JSE-listed IT services and specialised solutions provider Adapt IT Holdings has bought out Swicon360, for R11.7 million.
The acquisition strengthens Adapt IT's SAP skills, an area it is actively seeking to grow. It adds about 40 SAP specialists to the company and allows it to cross-sell business process outsourcing to its client base.
Adapt IT Group has more than 300 staff members, and provides solutions to the education, mining, manufacturing and financial services sectors.
CEO Sbu Shabalala says the acquisition should add to Adapt IT's bottom line straight away. Adapt IT has a history of being acquisitive and has recently bought BI Planning Services, for R17.25 million.
Building block
Shabalala says Adapt IT's stated intent was to expand its presence in the SAP market and the deal positions it well in terms of business process outsourcing offerings. He adds that many of Adapt IT's current 100 clients in the mining and manufacturing sector are already running SAP, and the deal allows it to expand its services to these clients.
Swicon, established in 2000, is a SAP services partner that specialises in providing business process outsourcing services for the SAP ERP Human Capital Management solution to clients across diverse sectors, deployed in a cloud environment.
These services include payroll processing, human capital management services, employee and manager self-service, end-user support and training. Shabalala explains it allows clients to move human resources transactions into the cloud so staff can focus on strategy.
Shabalala says the deal will propel and strengthen its current services and is its first step into the cloud. He says, over time, Adapt IT will add more business process offerings to its services and will continue to look for bolt-on acquisitions in the SAP space to strengthen its offerings.
Swicon CEO Markus Bucher says the deal will enable Swicon to grow beyond its traditional client base. The deal will be paid with cash of R10.4 million and a million Adapt IT shares.
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