Adapt IT acquires Australia's Wisenet
JSE-listed Adapt IT Holdings is acquiring Australia's Wisenet Group in a deal valued at SGD$5.2-million (R53.6m), with potential earn-out adjustments over the next three years.
Founded in 1997, the Wisenet Group operates in Australia, New Zealand and Singapore, with the main office situated in Melbourne, Australia.
The company provides a software-as-a-service (SaaS) learning relationship management system -student lifecycle management and compliance - to vocational training institutions called Registered Training Organisations.
It has an annuity-based revenue model, being SaaS subscriptions, which account for 90% of total revenue.
According to Adapt IT's statement issued today, the acquisition will complement Adapt IT's Education Division growth strategy and will provide the company with access to key proprietary software, customers and markets in the Australian education sector. Wisenet's 22 employees will remain with the business.
Sbu Shabalala, CEO of Adapt IT, says Wisenet has a 20-year track record in the Australian market and has built a credible reputation as the leading cloud-based learning relationship management platform provider in the education sector.
"The introduction of Wisenet into Adapt IT furthers our ambition to be a leading software provider in our chosen sectors, in Africa and beyond," says Shabalala.
Wisenet CEO and co-founder, Ben Hamilton, will lead the business development efforts of Adapt IT in the Asia-Pacific region, including other Adapt IT products not currently sold in the APAC region.
"We look forward to playing a meaningful role in Adapt IT's revenue growth in Australasia. I am excited about the cross-selling opportunities between our respective organisations and believe we will be able to unlock our synergies in the medium term," says Hamilton.
This deal follows Adapt IT's acquisition of the software firm Conor Group for R80-million in November 2018.
Conor, founded in 2007, is a software business that provides high-performance telco and mobile financial service solutions to the telecommunications industry in 10 countries across Africa and South America.
Adapt IT's financial results for the year ended 30 June 2018 showed a 36% increase in year-on-year turnover, to R1.35 billion, with organic growth from continuing operations being 13% and acquisitive growth contributing 30%.