DNI plans R2.1bn investment in four technology companies

Johannesburg-based investment group DN Invest plans to spend R2.1 billion acquiring stakes in four technology companies as it targets doubling the size of its business within three years.

Chief executive Ryan Noach told Bloomberg that DNI would invest in KnowRoaming, Mission Mobile, Frogfoot Networks and Vox Telecom South Africa.

The four investments will expand a portfolio that already contains 25 businesses across the communications and technology market.

South Africa remains the largest market

DNI generates more than R12 billion in annual revenue. About 85% comes from South Africa, while the group operates in more than 35 countries, including other African markets, Brazil, Pakistan and Australia.

The company’s digital-ecosystems division, which contains its non-distribution technology businesses, earns about 65% of its profit outside South Africa.

Noach said the planned acquisitions would be financed mainly from the group’s own resources. He indicated that further deals were being considered but did not name additional targets or give a timetable.

Frogfoot operates fibre networks in South Africa, while Vox provides business and consumer telecommunications services. KnowRoaming offers international mobile connectivity and Mission Mobile works in mobile distribution and related services.

DNI’s shareholders include pharmaceutical billionaire Stephen Saad and mining executive Mike Teke. The investment group has built its portfolio around telecommunications distribution, connectivity and digital services.

The R2.1 billion programme is intended to diversify the group further across the communications-technology sector. DNI did not disclose the individual values of the four proposed stakes or whether regulatory conditions still apply to any of the transactions.

The company has not announced plans for a public listing. Noach said the immediate focus was on the acquisitions and the three-year growth target.