Huge Group will make a significant investment in the Interfile Group, comprising Internet Filing and Ionize Technologies. The value of the deal was not disclosed.
Interfile develops and licences its own software and has over 20 years of experience in building and operating digital solutions.
Huge Group’s James Herbst says that the Interfile Group is a profitable and well-managed business that has a good track record and strong growth opportunities.
“While Interfile is well established in South Africa, there is a huge global growth potential for the productization and use of Interfile’s systems,” he said.
Approximately 80% of the Interfile Group’s revenue is annuity based, derived from operational and hosting, transactional, call-centre, consulting, and maintenance services.
The latest transaction adds to Huge Group’s R1.4 billion under management, which is focused on connectivity and cloud, software, and xtech clusters.
Duarte da Silva, chairman of Huge Group’s investment committee, said the Interfile investment fits in with their strategy.
“We intend to increase the proportional contributions of our software and x-tech clusters in our overall investment portfolio,” he said.
“The investment in Interfile is the latest in a strategic series of investments that are targeted to significantly uplift Huge Group’s ability to innovate and deliver cutting-edge services.”