INVESTMENT: BTS Sells 51% Of Avocado Vision Community Business to South African Investors
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BTS GROUP AB (publ),- BTS, a leading global strategy implementation firm, has sold 51 percent of Avocado Vision community business to three South African investors for a total of [R1,501,000]. The transaction will have negligible impact on revenue and profitability on group level.
Avocado Vision, which was acquired by BTS in March 2015, has two offers; consumer and financial literacy education in disadvantaged communities and Avocado Vision Corporate, which is fully integrated into the BTS structure and brand.
During 2015, significant changes were made to the Broad Based Black Economic Empowerment (BBBEE) legislation in South Africa necessitating a review of BTS investment in Avocado Vision. Black economic empowerment which seeks to deracialise the economy and broaden economic empowerment is a social transformation and legal reality. The latest revision places greater emphasis on compliance in business ownership and management to meet the latest BBBEE standards. Furthermore, the market, in response to the requirements of BBBEE places a premium on existing contracts to comply with the new requirements and thus BTS/Avocado Vision is positioned to take strategic advantage of this change in the operating environment.
“I’m glad that we were able to find a way to benefit both locally owned businesses in line with requirements for Avocado Vision and BTS South Africa, to remain competitive in adding value to their clients. The new co-shareholders in Avocado Vision have a good track record in our industry that will help open up new market opportunities for both of us,” says Henrik Ekelund, founder and CEO of BTS Group.
“Our goal for Avocado Vision is to not only ensure compliance with the BBBEE codes but enables us to leverage Avocado Vision Vision’s history and ability to scale up services in markets we currently operate in more aggressively and profitably. The strategic link to BTS through Avocado Vision is an important institutional and international brand we are proud to associate with and look forward to unlocking synergies from this transaction” says Henry Sebata who is buying a 40 percent stake together with his partner Neil Campher through their company CS Business Innovations.
“Avocado Vision welcomes the experience and insight by Campher and Sebata as well as Raelene Clarke,(a former employee of Avocado Vision) and now an established entrepreneur and CEO of SpringAge consultancy, who has acquired the remaining 11 percent.” Says Jules Newton, founder of Avocado Vision. “We have a solid history of working with Henry, Neil and Raelene across different spheres and this transaction makes sense as it is built on common values and understanding of the market and the opportunities to contribute to South Africa’s socio-economic conditions.”
Deon Greyling, BTS South Africa Managing Director and Jules Newton will continue as the Managing Director Avocado Vision community business. They are joined on the Avocado Vision board by Campher, Sebata and Clarke as non-executive directors with close oversight over the strategic growth targets defined by the group. Campher, Sebata and Clarke will lead new business development opportunities for growth that aims to diversify Avocado Vision’s offering and integrate key networks and competencies into delivery to new customers and markets.
AVOCADO VISION community business is now 51 % black owned, BTS will remain a significant shareholder with 49 percent. BTS will retain ownership of the intellectual property it has contributed to the Avocado Vision community business, while Avocado Vision community retains ownership of community specific solutions and IP.
Business News Sector Tags: Investment|