Capitalworks, a leading private equity manager, is pleased to announce the closing of the sale of its interest in IQbusiness, one of South Africa’s largest management and technology consulting firms, to Reunert ICT Holdings (Reunert ICT), a wholly owned subsidiary of JSE-listed Reunert Limited.

Since investing in the business in 2016, Capitalworks has actively worked alongside the management team and other shareholders, IQ Group Holdings and Tiso Investment Holdings, to realise the potential of IQbusiness through an active acquisition strategy that has seen the business add market leading competencies in consumer research and managed services to the existing consulting and technology offering. IQbusiness is a strong brand known to the market since its inception 25 years ago and this investment has assisted the business in generating revenues exceeding R1,0 billion from a team of over 1 000 consultants.

As part of the broader Reunert Group, IQbusiness’ integration into Reunert ICT create synergies for an expanded range of complementary offerings, with a significant increase in client access in both the enterprise and SME space, and improved routes-to-market through both direct and channel marketing relationships.

Shaun Frankish, principal at Capitalworks commented “Capitalworks has been fortunate to have had the opportunity to partner with IQ Group Holdings, Tiso Investment Holdings, and the strong management team at IQbusiness in growing one of South Africa’s leading independent consulting businesses. The transaction is a further example of how active private equity partners can assist world class South African businesses with unlocking their growth potential. The transition of ownership to Reunert ICT alongside the management team, offers new opportunities for growth and we are pleased that the business will be able to benefit from the complementary offerings afforded by Reunert ICT through this next phase.”

Adam Craker, CEO of IQbusiness commented Partnering with Capitalworks, IQ Group Holdings and Tiso Investment Holdings has enabled the business to capitalise on various organic and acquisitive opportunities and we’ve benefited significantly from the strategic input we’ve received. IQbusiness is excited about its next chapter of growth within the Reunert Group. Our combination has a unique proposition to provide strategic value to our clients. Together we aspire to become the employer of choice attracting specialised skills on our digital journey.”

Alan Dickson, Reunert’s Group CEO remarked, “The acquisition of IQbusiness supports Reunert’s ICT growth strategy and enhances our strategic vision of solving business challenges with innovative, high-tech solutions. The transaction adds meaningful scale to our systems and solutions integration cluster and brings access to a more diverse client base, thereby providing a platform for accelerated growth. Together with +OneX, IQbusiness adds complementarity and synergies that will result in Reunert ICT notably increasing our presence in the South African market.”