Sanlam acquires 60% stake in MultiChoice’s insurance business

Sanlam and MultiChoice , a media and entertainment company, have announced a partnership in which Sanlam will acquire a 60% stake in MultiChoice’s insurance business, NMS Insurance Services (NMSIS). This strategic move includes a long-term commercial arrangement to broaden the scope of insurance and related financial services available to MultiChoice’s extensive African subscriber base.

Sanlam will pay approximately $66 million USD upfront for the 60% stake in NMSIS. Additionally, there is a potential performance-based earn-out of up to $82.5 million USD, contingent on the gross written premium (GWP) generated by NMSIS by the end of 2026.

MultiChoice retains a substantial 40% interest in NMSIS and will continue to participate in the Africa-wide venture. This allows MultiChoice to benefit from the high growth potential of the insurance segment while maximizing shareholder value, according to the companies.

Sanlam and its affiliates will gain access to MultiChoice’s engaged subscriber base of 21 million households across 50 African countries. This provides an excellent opportunity for Sanlam to cross-sell its financial services products.

Sanlam will leverage MultiChoice’s engagement channels and integrated payment collection capabilities to offer a broader range of financial services to MultiChoice’s subscribers. Opportunities outside of South Africa will be facilitated through SanlamAllianz.