Adapt IT delisted from the JSE on Tuesday after Canadian group Volaris took control of the specialist software and services group for R616m, concluding a transaction that had been mired in a bidding war.
Volaris portfolio leader Michael Dufton assured Adapt IT’s employees and customers on Tuesday that the company intends to be a productive and positive force, including through the establishment of an education trust to benefit employees and their families.
“This is a great company, and we see potential for growth, and we are ready to empower Adapt IT with resources, technology and best practices to support the next phase of the company’s evolution,” he said in a statement.
Volaris, which specialises in acquiring software businesses, has operations in more than 35 countries and is a wholly owned subsidiary of Canada-listed Constellation. It had offered R7 per Adapt IT share and acquired 63.87% of the company with effect from Monday.
The acquisition results in a diversified SA software company being backed by a well-capitalised leading global technology firm that is keen to support further growth. Adapt IT now represents Volaris’s interests in Africa, where it sees significant opportunities for growth.
Adapt IT was founded in 1996 and listed its shares on the JSE in 1998. It has grown its customer base to more than 10,000 in 55 countries.
Volaris competed against JSE-listed Huge Group for the acquisition of Adapt IT. However, in October 2021, Adapt IT’s shareholders voted in favour of Volaris’s offer.
Adapt IT will continue to operate as an independent business unit inside Volaris Group, under the leadership of CEO Tiffany Dunsdon, with Nombali Mbambo as CFO and Tony Vicente as COO.
Dufton said throughout the process he has been impressed by the Adapt IT team’s professionalism and desire to deliver a great outcome for their customers, shareholders, employees and create value for the communities where they operate.
Dunsdon said in a statement both companies have a strong values-based culture with a continuous focus on investing in their employees, a global footprint, a history of acquisition of companies for the long term and a wealth of experience in the acquisition of software companies.
“The acquisition brings direct foreign investment into SA with opportunities for additional growth capital being invested into the country as well as the transfer of best practices,” said Dunsdon.
She added that Adapt IT has maintained its level 1 broad-based BEE status (B-BBEE), as transformation is a strategic imperative that goes beyond compliance.
In terms of the acquisition, Volaris has made a commitment to support Adapt IT in setting up an education trust with a shareholding in Adapt IT. This trust will directly benefit the employees and families of Adapt IT and the general communities in which Adapt IT operates.
“The education trust will be established within 12 months and will result in an effective 5% shareholding in Adapt IT in terms of current B-BBEE legislation,” said Dunsdon.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.