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22 September 2020

Delta Capita interested in target dossiers, external deal mandate possible

London, September 22, 2020 – Delta Capita, a Member of the Prytek Group, a UK-based managed services, consulting and solutions provider, is interested in acquisition ideas and could complete a transaction before end-2020, CEO Joe Channer told Mergermarket.

Management is seeking potential targets that will help the company grow, and will focus on targets that augment its infrastructure-as-a-service strategy, Channer said.

Delta Capita is expected to end 2020 with around USD 45m turnover and around 500 staff, he said.

The company is looking to buy standalone businesses with strong capital markets experience in consulting, fintech or managed services that can provide access to new technology, services or client bases, he said. It is also interested in acquiring banking client operations and technology platforms in non-differentiating functions that it can deliver to other organisations under a standardised managed-service model, he added.

While Delta Capita could mandate external advisory groups to handle deal due diligence matters, as the financial services arm of Singapore-based technology investor Prytek Group, its parent has these capabilities in-house, Channer said.

Prytek Group fully supports Delta Capita’s growth plans, its Managing Partner Andrey Yashunsky said. The focus is on building a strong and long-lasting managed service offering, rather than the traditional model involving stop-gap measures, he added. Channer agreed, adding that the company is concentrating on building a healthy, viable business with a future of value-creating acquisitions and a strong organic-development pipeline.

A target’s operations will be prioritised over its size or location when reviewing potential transactions, both executives noted. However, Yashunsky added that Prytek Group has a deep understanding of the Tel Aviv fintech community and strong connections in Israel, and so has access to acquisition opportunities it is passing along to Delta Capita.

No other details were given. Delta Capita has offices in the UK, Netherlands, Singapore and Hong Kong, while Prytek has a presence in the UK, Netherlands, Cyprus, Luxembourg, Poland, Russia, Israel, India and Singapore.
Delta Capita has access to around USD 150m of Prytek Group funds to pay for future deals, Channer said. It announced in a March-dated press release that it had secured USD 50m of equity investment from Prytek Group and gained access to more than USD 100m of funding for future acquisitions and client transactions.

Despite its clients undertaking cost-cutting measures, only three of Delta Capita’s around 350 staff were placed on furlough during the COVID-19 related lockdown, Channer said. The company’s work-from-home programme has led to it considering a permanent, structured work-from-home programme that will allow it to grow without expanding its existing Canary Wharf, London- headquarters, he added.

Delta Capita works with financial institutions to help them comply with regulations, simplify operations, reduce costs and leverage fintech. Prytek Group focuses on technology investments and operations-as-a-service companies, and has a USD 1.5bn portfolio in equity value across fintech, edtech, artificial intelligence, cyber security and human resources.

The company has been featured on the Financial Times FT1000 list of fastest-growing companies for the last three years.

by Lloyd Vassell. Original article was published by Mergermarket, 22/09/2020