Listed IT services and specialised solutions provider Adapt IT Holdings has wrapped up its strategy to wholly own its subsidiary companies, after buying out the balance of ApplyIT.
The deal, effective at the end of November last year, will cost Adapt IT R720 000, which it will settle through the issue of new shares. ApplyIT's current management team will be retained.
Commercial director Tiffany Dunsdon says the acquisition will enable Adapt IT to unlock new synergies with ApplyIT and improve operational efficiencies.
Adapt IT's announcement follows on news last October that the company was buying the 49% of ITS that it did not already own, taking out a loan to pay the R19.86 million purchase price. Shareholders approved the ITS buyout in mid-December.
The listed company has now bought out all the minority holdings in group subsidiaries, and intends pursuing further acquisitions to complement organic growth, says Dunsdon.
Adapt IT bought into ApplyIT in 2007 and, until the deal, owned 77.3% of the company, which operates within the manufacturing and mining sectors.
ApplyIT has expanded into other geographies such as Australasia, with its niche software solutions, which will assist Adapt IT to identify further growth and diversification opportunities in new markets.
CEO Sbu Shabalala says the transaction strengthens ApplyIT's strategic alignment within the Adapt IT Group. Concluding this deal with ApplyIT management makes both strategic and operational sense for the group, he adds.
The listed IT company has 260 staff throughout SA within its three subsidiaries: Adapt IT Solutions, ApplyIT and ITS.
Related story:
Adapt IT buys balance of ITS
Share
