Volaris Group has acquired Adapt IT Holdings for R7 per Adapt IT share, effective January 3, 2022.
According to a statement released on Tuesday, all conditions and regulatory approvals have been met, including from various competition authorities, the Takeover Regulation Panel and the JSE.
The statement reveals Volaris has acquired 63.87% of Adapt IT (the deal was conditional on Volaris acquiring over 50%). “Pursuant to the implementation of the deal, Adapt IT will delist from the JSE with effect from 4 January 2022.”
Volaris is a wholly owned subsidiary of Canadian-listed Constellation Software Inc and acquires and grows market-leading software businesses that develop specialised software solutions. Volaris has a presence in over 35 countries, with more than 120 companies in 30 vertical markets.
Adapt IT CEO Tiffany Dunsdon said: “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.
“With this acquisition, Adapt IT will have the opportunity to expand to many more countries and customers around the globe.”
Adapt IT now represents Volaris’ interests in Africa, where Volaris sees growth opportunities.
According to the Adapt IT statement, there is a strong fit between the two firms. “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.
“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.”
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.
Volaris is reportedly firmly committed to supporting Adapt IT maintain its Level 1 B-BBEE 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,” the statement reads.
Volaris has expressed confidence in the leadership team of Adapt IT with Dunsdon as CEO, Nombali Mbambo as CFO and Tony Vicente as chief operating officer.
“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,” said Dunsdon.
Michael Dufton, portfolio leader at Volaris added, “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.”
Listen: CEO Tiffany Dunsdon discusses the Volaris deal, and Adapt IT’s future (or read the transcript here)