Tritech Media sells its 45% stake in digital payment unit
Crossgate is no longer a non-core asset for Tritech Media because of its focus on mobile payments
Media technology company Tritech Media, founded by the Kirsh family, has sold its 45% stake in subsidiary Crossgate Technologies to fintech company Crossfin, it said on Tuesday. As part of the transaction, black-owned group Randvest Capital will also acquire a 30% holding in Crossgate.
Crossgate provides loyalty and gift cards to major retailers in SA. In the last three years, it has diversified into digital banking products and mobile payments.
The transaction will enhance Crossgate’s market share and accelerate its cashless payment initiatives.
Tritech Media founder William Kirsh said Crossgate was no longer a core asset given its focus on payments. However, Crossgate “has an exciting future with Crossfin [and] can realise its potential ... Our exit returns an attractive 25% of the capital invested by us in the group since its inception in 2010”.
Tritech specialises in digital content and products including loyalty programmes, cashless parking payments, and pre-paid cards. It has 20 companies with operations across SA, in India, the UK and the US. In August 2017 it established Tritech Media International to house its international assets with plans to expand into emerging markets.
Kirsh said the disposal of Crossgate, “stems from the consolidation work we’ve been doing in our portfolio over the last two years; that includes dealing with the under-performers, significantly strengthening our management team and notably nurturing the core [units] that have exceptional local and international growth prospects”.
Tritech Media also has a stake in listed technology firm Cognition, which, on Monday, announced the acquisition of a 50.01% stake in Private Property from media company Caxton for R127m. Private Property is an online property portal.