Sanlam Acquires 60% Stake in MultiChoice’s Insurance Business for R1.2 Billion

Sanlam Limited (Sanlam) and MultiChoice Group Limited (MultiChoice) has announced that they have entered into an agreement for Sanlam to acquire 60% of MultiChoice’s insurance business, NMS Insurance Services (NMSIS), as well as a long-term commercial arrangement to expand insurance and related financial service offerings into MultiChoice’s extensive African subscriber base.

Sanlam will pay an upfront cash consideration of R1.2 billion to MultiChoice for its 60% stake and a potential performance-based cash earn-out of up to a maximum consideration of R1.5 billion that is contingent upon the amount of gross written premium generated (GWP) by NMSIS for the financial year ending 31 December 2026.
MultiChoice will utilise the cash proceeds received from this transaction for working capital purposes. Also, through this agreement, MultiChoice retains a substantial 40% interest in NMSIS and will have the same participation in the Africa-wide venture, allowing it to continue benefiting from the high-growth potential of this segment, while maximising value for its shareholders.

Through this commercial arrangement, Sanlam and its affiliates have the opportunity to cross-sell financial services products to MultiChoice’s extensive and engaged subscriber base of 21 million households across 50 countries in Africa. Sanlam will leverage MultiChoice’s engagement channels and integrated payment collection capabilities to deliver these broader offerings to MultiChoice’s subscribers. Opportunities outside of South Africa will be facilitated through SanlamAllianz.

We are pleased to announce the coming together of Sanlam and MultiChoice to enhance insurance access in Africa. It affords us the opportunity to leverage our respective market footprints and technological capabilities that will support growth and market penetration, as well as provide opportunities to realise synergies for the benefit of all stakeholders.

Mr Paul Hanratty, CEO, Sanlam Group

For MultiChoice, the transaction represents an opportunity to expand its value-enhancing services such as insurance to its subscribers across Africa, leveraging the expertise and technology of Sanlam