Listed IT services and specialised solutions provider Adapt IT Holdings will buy out the 49% of ITS that it doesn't own, and take out a loan to pay R19.86 million for the stake.
Adapt IT bought the initial majority stake last June, for R16 million, from The Rooibos Trust and EDITS Holdings. Adapt IT's purchase of 51% in ITS strengthened ITS's black economic empowerment standing.
At the time, it said the deal would give Adapt IT a diversified portfolio and add to its public sector clients. In addition, ITS, which provides niche education software, would improve Adapt IT's presence in Gauteng.
CEO Sbu Shabalala says owning all of ITS will give Adapt IT the opportunity to expand its offerings into Europe and Australasia, where ITS has a strong presence.
In addition, strengthening ITS's empowerment credentials further will open the door to the tertiary sector, where ITS wants to target its offerings, Shabalala says. In the year to June, ITS accounted for R85 million of Adapt IT's R208.5 million turnover.
Shabalala explains that incorporating ITS will allow Adapt IT to focus on the group's strategic direction as a whole, and make cross-selling the company's products easier. “While we will continue to grow organically, acquisitions form an important part of our overall growth strategy,” he says.
ITS's current management, which was put into place when Adapt IT bought the initial 51% stake, will remain, says Shabalala.
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