The Competition Commission has recommended that the Competition Tribunal approve the proposed acquisition by Orient Victoria and KP Partners of King Price Financial Services (KPFS) and Porcupine Union, without conditions.
The primary acquiring firms are Orient Victoria and KP Partners. Orient Victoria is ultimately controlled by an individual who also controls Cartrack and its subsidiaries. This is an oblique reference to South African tech billionaire Zak Calisto. Orient Victoria supplies vehicle tracking, fleet management, stolen vehicle recovery, insurance telematics, broking services and related analytics in South Africa.
The primary target firms are KPFS and Porcupine Union. KPFS is a licensed insurance provider offering life and non-life insurance products, including car insurance, which is the relevant activity for the purpose of assessing this transaction. Porcupine Union is a technology-oriented consultancy firm that provides data-driven solutions using statistics, machine learning, collection optimisation and lead generation modelling.
The acquisition, when effected, is seen as generating synergy among the businesses involved.
In a statement, the Commission says that it is “of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. The proposed transaction does not raise public interest concerns”.