Transaction Capital’s Nutun deal gets green light

The Competition Commission has recommended that South Africa’s Competition Tribunal approve Q Link’s acquisition of Transaction Capital’s Nutun Transact.

In this deal, Q Link intends to acquire Nutun Transact, NCH, and Accysys.

Q Link is controlled by SPE Mid-Market Fund I Partnership, which is represented by the general partner, SPE Mid-Market Fund I General Partner. 

The SPE Fund controls several entities in addition to Q Link, which controls Q Sure.

Q Link is a financial technology business that provides payment collection solutions to improve collection rates for third-party benefit providers. 

The company is primarily focused on the insurance industry and processes deductions on behalf of its clients directly from individuals’ payroll or bank accounts by way of Early Direct Orders. 

Q Link has also developed several adjacent products, such as Moneyhub, Emolument Attachment Orders, and Membership Administration Services, around these collection solutions.

Q Link offers payment collection solutions primarily through two streams: payroll deductions and bank deductions.

The Primary Target Firms are Nutun Transact, NCH and Accsys. These firms are ultimately wholly owned by Transaction Capital, a public company listed on the JSE. 

Accsys is a dormant company. Nutun Transact operates across the Business to Business (B2B) transactional value chain and its services include payment processing, collection services, risk management (data) services and human resources (HR) and payroll management solutions.

NCH provides credit reports to clients using their credit profiles from the Consumer Profile Bureau, Experian, TransUnion and Xpert Decision Systems.

“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. The proposed transaction does not raise significant public interest concerns,” the Competition Commission said.

Transaction Capital currently consists of two divisions: Nutun and SA Taxi. It previously owned WeBuyCars, but the company was unbundled and listed separately on the JSE earlier this year.