Huge Group’s plan with R254 million facilities agreement

Huge Group concluded a new facilities agreement with Rand Merchant Bank (RMB) for R267 million on Thursday, 26 May 2022, and the funds will be used for new investments.

The funding is broken down into separate facilities — R240 million for refinance and acquisition, R12 million for general banking, and R12 million for asset-based financing.

MyBroadband asked Huge Group about its new debt facility, and CEO James Herbst said the funds would be used to fund investments.

Following the RMB agreement, Huge Group concluded two acquisitions — 1,000 shares in Huge Networks from Otel Communications and a subscription for new ordinary shares from Glovent Solutions.

“With a two-year payback profile, the making of the Additional Investment was attractive,” Huge Group director, Andy Openshaw, said, referring to the Otel Communications deal.

He added that 100% ownership of Huge Networks would make it easier to scale.

“We have identified numerous target companies with which to scale Huge Networks. You can expect us to be far more active in trying to merge or acquire more companies with Huge Networks,” Openshaw said.

“While it might appear that owning 100% of Huge Networks is contrary to Huge Group’s investment strategy of backing a jockey or executive team that have skin the game, the Additional Investment does not suggest otherwise,” said Herbst.

Huge Group CEO James Herbst

“Having Huge Group as an investor supports our growth strategy and provides an exciting opportunity for further expansion,” Huge Networks’ co-founder and managing director, Marius Oberholzer, added.

Oberholzer also outlined his priorities for Huge Networks, which include positioning the company as a security and data service provider, and offering secure data, voice, and network services.

Herbst also explained the benefits of Huge Group’s Glovent Solutions acquisition.

“The acquisition gives us an exciting entry into markets and industries that are key investment focus areas of ours,” he said.

“For Huge Group, Glovent is a Global Venture. It has global application and global appeal,” he added.

Chairperson of the Huge Group Investment Committee, Duarte da Silva, said the company’s acquisition of Glovent Solutions — a property management systems provider — would help it go global.

“The Huge Investment team’s relationships and their experience in, and access to, international Equity Capital Markets will facilitate and accelerate taking Glovent global,” he said.

“Glovent represents an exciting digital platform that will appeal to multinational investors hungry for quality Fintech assets.”


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Huge Group’s plan with R254 million facilities agreement