(Ecofin Agency) - Sanlam, a South African insurance company, will acquire a 60% stake in the insurance segment of local media group MultiChoice. The announcement was made via a joint statement issued Tuesday.

Sanlam Life, a subsidiary of Sanlam, will purchase this majority stake in NMS Insurance Service, MultiChoice's insurance branch. The initial cash payment is 1.2 billion rand ($66 million), with a performance-based earn-out potentially reaching 1.5 billion rand ($83 million).

The two Johannesburg-listed companies will join forces to expand their customer base and product offerings in South Africa and across the continent. "This collaboration with Sanlam is a strategic milestone for MultiChoice. It not only allows us to increase the value we provide to our subscribers, but also enables us to leverage Sanlam’s expertise to drive growth and innovation in our insurance offerings across the continent,” said MultiChoice CEO, Mr Calvo Mawela.

MultiChoice, which boasts a vast subscriber base of 21 million households in 50 African countries, owns NMS Insurance Service, a licensed financial services provider offering life and non-life insurance products under the DStv brand. Their offerings include device insurance, installation, funeral cover, subscription cancellation, and debt cancellation.

Sanlam operates in 31 countries, primarily in Africa and Asia, with approximately 75% of its revenue generated in South Africa.