Broadreach Private Equity alongside Grindrod Financial Services have acquired an equity stake in FS-Systems, an African systems integrator providing end-to-end fire & electronic security solutions.

Terms of the transaction were not disclosed.

Established in 1971, FS-Systems has extensive experience in integrated electronic life safety platforms for commercial and industrial applications.

The company delivers turn-key safety solutions for the protection of people, property and electronic data.

Rick Basson, Executive Director of Broadreach Private Equity, said: "Broadreach is excited by the significant demand we see for FS-Systems’ products and services, particularly in the fields of advanced video surveillance and workforce management where market growth rates are forecasted to exceed 20% per annum.”

“FS-Systems also has had noticeable success in expanding its services outside of South Africa, with cutting edge installations being completed in Latin America and the rest of Africa. These factors, together with their strong reputation and significant market share within the South African market, were a major attraction for us,” he said.

Broadreach Private Equity, a subsidiary of Broadreach Capital, is a specialist mid-market private equity investor, focusing on providing growth capital to businesses where it sees the potential for significant expansion.

The firm is investing in businesses with valuations between R50m and R500m.

Carlo Klopper, Managing Director of FS-Systems, considers Broadreach to be “the ideal partner” to assist the firm in pursuing its growth agenda and in developing further value-adding solutions for their clients.

“We are fascinated by the way that the power of the Internet of Things is changing the electronic security and safety industry, and with Broadreach on board we will continue to develop the expertise required to position ourselves as leaders in smart and secure cities,” he said.

“Broadreach has recognised the sound expertise of our team and we look forward to welcoming them to the next chapter for FS-Systems, which will see us build on our 45 years of success,” he added.

As a result of the deal, FS-System’s CEO, Leo Slootmans leaves the company.

Broadreach Private Equity and FS-Systems' other senior management will now jointly control FS-Systems, resulting in a blend of industry experience, operational capability, strategic input and financial resources at a shareholder level.

"We are convinced that introducing a strong and supportive financial partner to FS-Systems will enable it to continue expanding its business as strongly as it has done over the last five years. Of critical importance to us is that Carlo Klopper, Managing Director and Cecil Meyer, Projects Director have material equity stakes alongside Broadreach and we look forward to partnering with them to develop FS-Systems into a diversified technology services group," Basson said.