Sanlam completes $66.4 million acquisition of MultiChoice insurance unit

Feyisayo Ajayi -
Key Points
  • Sanlam acquires 60% of MultiChoice’s insurance arm for $66.4 million to expand in Africa’s financial market.
  •  The partnership leverages MultiChoice’s 21 million subscribers and payment systems to offer a range of insurance products. 
  • MultiChoice retains a 40% stake, benefiting from growth while bolstering working capital and enhancing insurance offerings.

Sanlam Life, a subsidiary of Africa’s leading insurer Sanlam partly owned by Africa’s first Black billionaire Patrice Motsepe, has finalized the $66.4 million acquisition of a 60 percent stake in MultiChoice's insurance business.

The move, announced Monday, positions Sanlam to leverage MultiChoice’s broad subscriber base and payment systems to expand its financial services offerings across Africa.

The deal, effective Nov. 30, gives Sanlam access to MultiChoice’s 21 million subscribers in 50 countries, a key advantage in tapping into Africa's rapidly growing financial services market.

Sanlam plans to cross-sell life insurance, non-life insurance, and wealth management products through MultiChoice’s established customer engagement channels.

Strategic alliance to drive growth and innovation

The acquisition provides Sanlam with significant expansion opportunities, including the potential for further earnings.

As part of the deal, MultiChoice will receive an initial cash payment of R1.2 billion ($66.4 million), with a performance-based earn-out of up to R1.5 billion ($82.9 million) by 2026.

MultiChoice, which retains a 40 percent share in the insurance business, will use the funds from the transaction to enhance its working capital.

Both companies aim to drive innovation and growth, with MultiChoice’s CEO Calvo Mawela calling the deal a “strategic milestone” that enhances value for subscribers while tapping into Sanlam’s insurance expertise.

Sanlam expands its African footprint

Sanlam, partly owned by Africa's first Black billionaire Patrice Motsepe, continues to solidify its status as Africa's leading insurer through strategic acquisitions, including the formation of SanlamAllianz, a joint venture with Allianz aimed at expanding its reach across the continent.

One of the group’s units, Sanlam Life, which provides life, non-life insurance, and wealth management solutions, operates in Africa, India, and Malaysia, positioning itself as a dominant player in the global financial services market.

Sanlam Life’s acquisition follows the group’s recent $371.8 million buyout of Assupol Holdings, strengthening its position in South Africa’s life insurance sector. The company is also pursuing global expansion, with a focus on India’s wealth-management industry.