Private equity group Medu Capital recently invested in the security technology sector with its acquisition of a 51% stake in the security technology provider, Secutel Technologies.
Secutel develops and owns its own intellectual property, which is specifically targeted to provide companies with surveillance and intrusion detection technology, to assist businesses to protect themselves against the theft of valuable assets and cash.
Secutel plays a role in mitigating the high rates of crime perpetrated against large companies. Businesses that make use of these security products include high-value, high-risk sites such as ATMs, cash centres, bank vaults, telecommunication base stations and retail stores. Secutel currently has a large installed base within the South African banking sector.
The acquisition of Secutel is in line with Medu Capital’s long-term conviction that South Africa still offers good investment opportunities and will prosper over time. The investment house’s strategy is to invest across a diverse range of sectors in businesses with excellent management teams and growth prospects.
As a black-owned investment house with a focus on private equity, Medu Capital partners with established entrepreneurs to grow and develop businesses by providing long term capital, skills and assistance with BEE compliance and strategy.
In Secutel, Medu Capital is forging a partnership with the two entrepreneurs, Carel Brink and Danny Pringle, who founded the business in 2006. Two Medu Capital executives, Nhlanganiso Mkwanazi and Sandile Buthelezi have joined Secutel’s board of directors. To help advise Secutel on its future growth, Medu Capital has also brought in Nick Dennis, former CEO of Tiger Brands and founder of Lodestone to serve as a non-executive director on the Secutel board and as a shareholder.
Nhlanganiso Mkwanazi, director of Medu Capital says there were several reasons for buying into Secutel. “It is a well-established business with a proven track record and an exceptional management team. We like the fact that Secutel is making a positive impact in our society to help mitigate the country’s scourge of robberies against large enterprises. The company has a DNA of developing its own technology and solutions to solve the specific crime problems in South Africa.”
Carel Brink, managing director of Secutel, says, “Our partnership with Medu Capital provides us with the right partners to help us realise our ambition to significantly grow and develop our business. Medu Capital is a well-established investment house run by entrepreneurs like us, who have paid for their shares in cash. They have access to capital to help the business grow, and share in our ambition to consider and make further acquisitions”.
Danny Pringle, director of Secutel, concluded, “With this deal, Secutel is now majority black owned, which also provides the BEE credentials to continue to pursue contracts with major sized South African companies. This, together with our unique and proprietary technology and product suite, positions us favourably for growth in all our key markets.”
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