Company Announcement - RMB Ventures, the private equity subsidiary of FirstRand Limited, and Bopa Moruo, an independent, black-owned private equity firm, have invested in digital signage company One Digital Media, alongside management. RMB Ventures and Bopa Moruo facilitated a management buyout from the previous majority shareholder.

RMB Ventures looks for investment opportunities in companies with leading positions in their industries, attractive long-term prospects and committed management teams. “We believe that One Digital Media provides all the essential requirements we look for in our investments. It is the best company in the digital signage space in South Africa and has a passionate management team, while its long-term strategy of providing digital signage to clients in the rest of Africa is particularly attractive,” says RMB Ventures lead transactor Muhammed Moosa. “Our strategy is to leave the day-to-day running of our investments to management while offering our expertise in optimising the capital structure, improving corporate governance and supporting management’s strategies. We believe, as a private equity shareholder, we can assist One Digital Media with growing its business.”

Bopa Moruo identifies potential investments as those with long-term prospects for profitability, growth and cash generation. “We liked One Digital Media because it operates in the growing market of digital media,” says Tumi Tlhabanelo, co-founder and director of Bopa Moruo. ”We believe we can work with management to achieve their long-term growth and profit objectives.”

One Digital Media is South Africa’s largest provider of digital signage to retailers, corporate clients and restaurants. “Retailers are continually having to adapt to a changing retail environment and new demands from consumers,” says One Digital Media chief executive Andrew Ridl. “Our products allow our customers to use a digital media platform across a number of outlets while being able to select from a variety of digital communication methods such as screens for instore promotions and deals, digital menu boards (for restaurants) and internet kiosks. The partnership with RMB Ventures and Bopa Moruo in our business will be an important contribution to our future growth.”

As well as its strong South African business, One Digital Media is expanding into other African countries. “Large corporates have seen what we have done with Woolworths, Spar, KFC, Wimpy, Spur and Cell C, for example, and are keen to explore similar options in countries outside of South Africa,” Ridl says. “Most recently, (Indian-based telecommunications company) Airtel has asked us to deliver a futuristic, interactive product to its stores in eight African countries while many of our current South African clients, such as Le Creuset, are expanding their networks into Africa and taking us with them.”