Adapt IT delists from JSE after Volaris acquisition
Software services firm Adapt IT has finally been acquired by Volaris Group for R7 per Adapt IT share effective 3 January 2022.
Volaris is a wholly-owned subsidiary of Constellation Software, a Canadian listed entity.
In a statement, Adapt IT says all conditions and regulatory approvals have now been met, including approval from various competition authorities, the Takeover Regulation Panel as well as the Johannesburg Stock Exchange (JSE).
It notes that the deal was also conditional on Volaris acquiring more than 50% of Adapt IT shares.
Volaris has acquired 63.87% of Adapt IT. Pursuant to the implementation of the deal, Adapt IT will delist from the JSE with effect from 4 January 2022.
Headquartered in Toronto, Volaris Group is an international provider of vertical market software and services several industries.
According to Adapt IT, Volaris acquires and grows software businesses that develop specialised software solutions. The company has a presence in over 35 countries, with more than 120 companies in 30 vertical markets.
“The acquisition is a wonderful South African success story. Adapt IT was founded in 1996, the business was listed in 1998 and successfully grew its customer base to more than 10 000 customers in 55 countries around the world,” says Tiffany Dunsdon, CEO of Adapt IT.
“With this acquisition, Adapt IT will have the opportunity to expand to many more countries and customers around the globe.”
Adapt IT notes that the acquisition results in a diversified South African software company being backed by a well-capitalised leading global technology firm that is keen to support further growth.
It adds that Adapt IT now represents Volaris’ interests in the African continent, a region in which Volaris sees opportunities for growth.
“There is a strong fit between Volaris and Adapt IT,” says the company in its 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.”
It points out that the acquisition brings direct foreign investment into South Africa with opportunities for additional growth capital being invested into the country as well as the transfer of best practices.
Says the firm: “Adapt IT’s capabilities in the pan-African, Asia-Pacific and European markets enable market development and expansion within those regions, with project delivery being supported from South Africa where the majority of the software development capabilities exist.
“Adapt IT’s DNA is very similar to that of Volaris. Its vertical market software specialisation with global distribution and a successful track record of acquisitions makes it a strong fit. However, its local nature being founded and headquartered in Africa and its empowered status in South Africa, differentiate it as a service provider and as an acquirer.”
Of critical importance is that Adapt IT has maintained its Level 1 B-BBEE status, adds that firm.
“Transformation is a strategic imperative and goal for the business that goes beyond compliance. Volaris is firmly committed to supporting Adapt IT maintain this status. An independently governed Education Trust mainly for the benefit of employees and their dependants will be formed and become a shareholder in the business, to build a permanent legacy.”
“Investment in our people and internal advancement is critical to our ethos and our success,” says Dunsdon.
According to Adapt IT, Volaris has expressed confidence in the leadership team of Adapt IT with Tiffany Dunsdon as chief executive officer, Nombali Mbambo as chief financial officer and Tony Vicente as chief operating officer.
The Volaris acquisition has been supported by the management team at Adapt IT.
“We are pleased to have successfully concluded the deal. The Adapt IT team looks forward to assimilating into the Volaris Group, driving higher organic growth and resuming our acquisition strategy in earnest. We start an exciting new chapter of growth now,” adds Dunsdon.
Michael Dufton, portfolio leader at Volaris says: “Adapt IT is a solid business with an experienced leadership team.
“We have followed the success of the business for some time and felt it would be a great fit. Volaris has ambition to invest in African markets and, thanks to Adapt IT regional presence, we are now well positioned to invest. I welcome Adapt IT into the Volaris fold and look forward to working with the team.”