Momentum snaps up 26-year-old company with its own special software

Momentum Corporate has snapped up all the shares in Verso Group, with it taking control of the company from 1 September 2026. 

The acquisition will bring Verso’s retirement fund administration and consulting expertise into the JSE-listed giant. 

In particular, Verso built its core business model by developing proprietary administration technology rather than relying on third-party software.

This allows it to easily manage highly customised and complex retirement funds

This comes as Momentum uses its financial firepower to acquire businesses in South Africa’s investment and medical insurance sectors. 

Momentum CEO Jeannette Marais has been clear that the company is actively looking for acquisitions to boost its scale. 

Marais has also not beat around the bush in her ambition to lead Momentum’s charge into the medical scheme space and take on the incumbent, Discovery. 

Discovery has the largest open medical scheme in South Africa, with it having more members than all other open schemes combined. 

However, Momentum recently won the contract to be the administrator for Bonitas, giving it significant scale at a fairly low cost. 

The company is firmly on the front foot, with earnings up 11.3% year-on-year in its latest results to R6.81 billion.  This was also the first time five of its operating divisions generated earnings exceeding R1 billion. 

Momentum Corporate appears to be leading the acquisition charge in the investment business, having snapped up Verso. 

This acquisition brings a 26-year-old firm with a strong reputation for specialist expertise in retirement fund administration, employee benefits, and healthcare consulting. 

Headquartered in Bellville, Cape Town, the company has a national footprint across South Africa and has 200 employees. 

It has grown from a niche administrator into a comprehensive financial services provider, adding health insurance and wealth management businesses. 

Crucially for Momentum, it also has some exposure outside of South Africa in the Southern African Development Community (SADC).

Momentum Corporate said the acquisition will strengthen the business’s investment in employee benefits in particular. 

This will help employers and retirement fund members build long-term financial security while enabling Verso to significantly scale its offering. 

The acquisition will also give Momentum access to Verso’s proprietary software platform, which Verso uses to administer its retirement funds. 

Momentum is on the acquisition hunt because it now has the firepower to address one of its key issues – a small advisory force. 

Historically, it has had a smaller advisory base than its peers because Momentum has focused on distribution through independent financial advisers. 

Competitors, such as Old Mutual and Sanlam, have tied financial advisors in the thousands through which they can sell and cross-sell products. 

Momentum is pivoting toward bolt-on acquisitions due to rising demand for more specialised products and the company’s pursuit of greater market share.