As Campan exits its 20% stake in Ubusha Technologies, following JSE-listed Allied Electronics’ (Altron’s) 100% acquisition of the identity security provider, the private equity group is intensifying its focus on transformative Fourth Industrial Revolution (4IR) early-stage startups.
Campan, founded by former Dimension Data CEO Brett Dawson in 2017, secured a 20% stake in Ubusha two years ago, as it believed that identity-based security would become an enabler for 4IR.
Altron, through subsidiary Altron TMT, subsequently entered into a R360-million share sale agreement with Ubusha holding company Gydan Investments, with plans to merge the identity security business with its cyber technology operations to establish Altron Security Solutions.
The deal is effective March 1, subject to Competition Commission approval.
Ubusha enables dynamic authentication and authorisation, identity management and governance and privileged account security for local and international banking, financial services, insurance, telecommunications and retail customers.
The closure of the transaction, Dawson highlights, proves the accelerated returns on offer to private equity investors that back transformative early-stage 4IR-enabled businesses.
“Altron’s decision to snap up the security specialist was motivated by Ubusha’s 30%-plus compound annual growth in revenue delivered over the decade ending 2018, underpinned by R170-million in revenue and R40-million earnings before interest, taxes, depreciation and amortisation during its latest financial year,” he says.
With the Internet of Things, big data and cloud computing, besides others, driving the world’s transformative transition into 4IR, an age is being entered where technology and business are wholly intertwined, leading to massive changes in efficiency and customer service.
Campan aims to identify and invest in the promising early-stage startups that are leveraging these 4IR technologies to shake-up traditional models.
Campan is currently a foundation level investor in BrandHubb, Fourex, and Wrapistry, as well as an investor in NuMobile.
“Each of these businesses is leveraging technology to make fundamental and transformational differences to customer service, business processes, systems, industries and broader society,” he says.
The company is guiding and nurturing these businesses by providing coaching and mentorship to their leadership teams as well as taking an active role in strategy, and provides the capital needed to accelerate their business plans and exploit the myriad opportunities that the 4IR presents.
“The availability of capital will enable startups in this space to make a real difference to society and deliver stellar returns to early investors.”
“We invest in and nurture businesses that revolutionise customer service through the positive application of technologies such as automation, artificial intelligence, data exchanges and cloud-based solutions,” Dawson elaborates.
The vision is for Campan to become a leading incubation platform that nurtures transformational businesses to greatness, he concludes.