OUTsurance Holdings Limited has concluded an agreement to sell investment platform OUTvest to Alexander Forbes Group Holdings Limited. The consideration amount was not disclosed.
OUTsurance Holdings is an 89.8%-held subsidiary of OUTsurance Group Limited (OGL).
In its annual report, OUTsurance said OUTvest, which was launched in 2017, had not grown as expected, and the group had decided to consider a restructuring of OUTvest, which included the possibility of a disposal.
OUTvest reported a loss of R27.6 million in the year to the end of June 2023.
“Alexforbes has a strong track record in the South African investment landscape. OGL is confident that a business of this stature will be a good fit for the OUTvest investment platform to ensure its full potential is realised,” OGL said in a SENS announcement yesterday.
In a separate announcement, Alexforbes said OUTvest was built to enable the distribution of a range of high-quality, simple, and low-cost wealth products, through direct and intermediated channels to a range of customer segments, to help them achieve their financial goals. The platform integrates automated advice, human advice, administration, and asset management into a seamless digital wealth solution that is designed for scale.
“The acquisition accelerates our digital journey and supports our strategy of transforming into the most impactful provider of advice to retirement fund members,” Alexforbes said.
The effective date of the acquisition will depend on the fulfilment of all conditions precedent and is expected to occur towards the end of March 2024.
If the necessary regulatory approvals are obtained, and the commercial conditions precedent fulfilled, OUTvest and Alexforbes will collaborate to ensure a seamless transition and minimal disruption for customers, employees, and suppliers of OUTvest, Alexforbes said.
