Counsel to technology, media and telecommunications focused private equity house Convergence Partners (Convergence) in its R10 million subscription for shares in the share capital of Snapt Systems Proprietary Limited (Snapt). Snapt is a South African technology company focusing on the provision of high-end virtualized and cloud-based load balancing, web acceleration and security software. It has been disrupting the market since its launch in 2012 and has achieved astonishing year-on-year growth of 400% in both 2014 and 2015. Snapt has also recently opened its first US offices in Atlanta. As part of its expansion in the US, Snapt aims to capture a 1 percent share of the USD 6.5 billion application delivery software market within the next three years. This interesting transaction sees Convergence Partners straddling the gap between straight venture capital and straight private equity. In effect, Convergence Partners has invested in Snapt as a “Series A” investor and it is envisaged that there will be later stage investors investing in the future at higher valuations.
