African Rainbow Capital (ARC), led by chairperson Patrice Motsepe, has reached an agreement to acquire, through its 50.1% held subsidiary, ARC Financial Holding Company (FinHoldCo), 90% of TymeDigital by Commonwealth Bank, for an undisclosed consideration.
When concluded, FinHoldCo will own 100% of TymeDigital – a South African registered bank with a strong fintech focus.
The acquisition comprises TymeDigital in South Africa and the related intellectual property and patents.
TymeDigital has been trialling its operations as it works towards an official launch. It aims to provide affordable and accessible banking services through a growing network of partners, including Pick n Pay.
Targeted client segments include unbanked and underserved clients, as well as small and medium enterprises.
Competitive technology allows the bank to on-board clients with greater ease relative to its competitors and keep bank charges more affordable than what South African banking clients pay in general.
Following the finalisation of the acquisition, ARC may consider introducing new shareholders in the current structure, which may include management.