Sanlam backed by Africa’s first Black billionaire Patrice Motsepe makes $65.9-million acquisition

Feyisayo Ajayi -

Key Points:

  • Sanlam Life to acquire 60% of NMS Insurance Services from MultiChoice, enhancing its African insurance footprint.
  • MultiChoice retains 40% of NMSIS, aligning with its growth strategy in media and technology while capitalizing on insurance sector potential.
  • Sanlam recently acquired a controlling stake in the Shriram Group’s insurance business in India, a significant move beyond the African continent shores.

Sanlam Life, a subsidiary of Africa’s leading insurer Sanlam and partly owned by Africa’s first Black billionaire Patrice Motsepe, has announced plans to acquire a controlling stake in NMS Insurance Services (NMSIS) from MultiChoice, in a deal valued at R1.2 billion ($65.91 million).

Under the terms disclosed in a SENS announcement today, Sanlam will purchase a 60-percent stake in NMSIS from MultiChoice, with an additional potential earn-out of up to R1.5 billion ($82.5 million) based on NMSIS’s gross written premium performance by Dec. 31, 2026. 

This transaction is expected to be finalized by Jan. 31, 2025, subject to regulatory approvals, allowing MultiChoice to retain a 40-percent share in NMSIS.

Sanlam expands African reach with NMSIS acquisition

NMSIS, a key player in MultiChoice’s fintech division for over two decades, operates under the DStv brand in South Africa, specializing in various insurance products including device, installation, funeral, subscription waiver, and debt waiver. The firm has demonstrated robust growth and profitability in the South African market, making it an attractive asset for Sanlam’s expansion strategy.

Sanlam, founded in 1918 and listed on the Johannesburg Stock Exchange with a market capitalization of R143 billion ($7.6 billion), has been actively pursuing growth opportunities across Africa. With a keen focus on leveraging market expertise and established presence, Sanlam aims to capitalize on the continent’s growing insurance market and expanding middle class.

This acquisition follows Sanlam’s recent strategic investments, including a controlling stake in the Shriram Group’s insurance business in India, underscoring its ambition to broaden its international footprint beyond Africa. Africa’s first Black billionaire Patrice Motsepe holds a 7.8-percent stake in Sanlam through his investment vehicle, Ubuntu-Botho Investments, and serves as the deputy chairman.

MultiChoice boosts future potential with insurance stake

For MultiChoice, retaining a significant stake in NMS Insurance Services allows the company to participate in the future growth potential of the insurance segment, aligning with its strategy to enhance shareholder value while focusing on core media and technology operations.

The acquisition marks a pivotal moment for Sanlam Life as it seeks to deepen its influence in the African insurance landscape, promising synergistic benefits that could reshape the market dynamics in the years ahead.