Looking to leverage off the growing healthcare sector in Nigeria, which remains underpinned by a growing middle class and a reduction in medical tourism, black-owned investment group Kagiso Tiso Holdings (KTH) has secured a “substantial” equity shareholding in Nigerian healthcare diagnostics company Me Cure Healthcare.

Me Cure provided diagnostic, eyecare and dental services at its operations throughout Nigeria, operating two diagnostics centres in Lagos and five across Ibadan, Kano, Ondo, Umuahia and Aba.

The company was expanding its services through the establishment of West Africa’s first fully integrated oncology centre, which would be commissioned in 2016.

KTH chief investment officer Jacob Hinson said the group sought to invest in fast-growing companies with strong and innovative management in select sectors.

“Under the leadership of founders and entrepreneurs Samir Udani and Kunle Adebowale, Me Cure has consistently demonstrated the significant growth potential of the company. We look forward to a long and mutually rewarding relationship with the Me Cure team,” he commented.

KTH CEO Vuyisa Nkonyeni added than an important part of KTH’s Pan-African strategy was to partner with companies that were leaders in their sector and which demonstrated the importance of innovation and dynamism in their particular field of expertise.

“Me Cure will provide a valuable addition to KTH’s suite of best-in-class portfolio companies and with their commitment to providing world-class technology to the people of Nigeria, we are delighted to be able to partner alongside them,” he held.

The deal represented KTH's second investment in West Africa following the  acquisition last year of a minority stake in Fidelity Bank Ghana.

The company said it would continue to pursue acquisitions in East and West Africa in addition to its already large South African portfolio.

Last month KTH announced the acquisition of a 51% stake in Servest, now the largest black-owned facilities management company in Africa; a company that also had operations in Nigeria.

KTH would be joining the board of Me Cure to provide it with strategic support in executing its growth strategy.