Sanlam Investment Holdings (SIH) has agreed to acquire a 30% stake in First World Trader Proprietary, trading as EasyEquities.

The transaction is subject to the fulfilment or waiver of certain conditions precedent, including the approval of the Competition Commission.

EasyEquities is a fintech business, which has disrupted the investments sector with its low barriers to opening an investment account, through its low-cost platform. 

One of its primary objectives is to provide investment solutions to all South Africans by removing barriers such as high cost and product complexity. 

This deal is one further step towards joint efforts by Sanlam Investments and EasyEquities to make it easier for investors to be able to save by facilitating easier access to investments.

Launched during October 2014, EasyEquities has, to date, been funded by the earnings of the other business units operating within the Purple Group and through funding procured by the Purple Group through small capital raisings. 

The rapid growth of EasyEquities has necessitated the need to seek out additional funding from a partner that brings with it the necessary capital to fund the growth and development of the platform over the next  24 to 36 months. 

In addition to capital, Sanlam Investments was identified on the basis that it would broaden market access through established distribution channels both locally and abroad.

Charles Savage, CEO of Purple Group, said: “The EasyEquities transaction with Sanlam Investments provides our fintech winner with added capital, skills and the ability to continue on the path we’re on – aggressive growth in client numbers, products on the site for client benefit and a way for all South Africans to access the financial markets – in South Africa and excitingly also in the US.” 

“We also look forward to announcing our international growth plans where the collaboration with Sanlam Investments provides invaluable insights, guidance and access to various jurisdictions.”

Robert Roux, CEO of Sanlam Investments, said: “The deal solidifies the relationship to the benefit of clients and shareholders. We believe that EasyEquities is a market leading fintech company and an innovative business focused on servicing the needs of its clients. It is typically the kind of business Sanlam seeks to partner with.”

“Sanlam has a vision to provide financial education, financial freedom and access to financial markets to a wider range of clients. This is a segment of the South African population that EasyEquities has already established a presence in. For both Sanlam Investments and EasyEquities the primary focus is to service the clients’ needs, provide direct access to the market at an affordable cost in a simple and transparent way,” he added.