Cover story

Why Herman sold MXit

Mobile messaging and social media services provider MXit is flying high with more than 43 million users in 128 countries and thousands more coming aboard each day. It’s a South African success story. So why is founder and CEO Herman Heunis bailing out?

01 November 2011

The contrast was clear to both men. Alan Knott-Craig Jr breezed into the office of MXit founder and CEO Herman Heunis, well groomed, smartly tailored and brimful of ideas about opportunities in the local technology market. Heunis, whose craggy features, long wiry hair and faded blue jeans did little to disguise more than 30 years of writing software, listened patiently. Towards the end of the discussion, Knott-Craig mooted the idea of buying MXit. Heunis agreed to think about it. Knott-Craig left the office, climbed aboard his blue Vespa scooter and sped off to his nearby premises on the outskirts of Stellenbosch. Heunis had found his buyer.

Seven months later, the deal was done. World of Avatar, the technology investment company headed by Knott-Craig, announced in September that it had bought control of MXit. Heunis sold all his interests in MXit – 60 percent in MXit Lifestyle South Africa, and 50 percent in MXit Lifestyle International. World of Avatar also snapped up the 30 percent stake in MXit’s local operation held by media colossus Naspers as well as its 50 percent interest in the international business. The investment firm now holds all but ten percent of MXit’s South African business, which has been retained by a staff trust. None of the parties is keen to talk about the size of the deal but technology industry pundits put the value of World of Avatar’s investment at around R500 million.

ITWeb Premium

Get 3 months of unlimited access
No credit card. No obligation.

Already a subscriber Log in