Leading South African technology firm Adapt IT Holdings Limited has been acquired by Volaris Group 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 acquisition results in a diversified South African software company being backed by a well-capitalized leading global technology firm that is keen to support further growth. Adapt IT now represents Volaris’ interests in the African continent, a region in which Volaris sees opportunities for growth and 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.
Michael Dufton, Portfolio Leader at Volaris Group said: “I want to assure Adapt IT’s employees, customers, and stakeholders that we have every intention to be a productive and positive force in Adapt IT’s future. This is a great company, and we see potential for growth. We are ready to empower Adapt IT with resources, technology, and best practices to support the next phase of the company’s evolution.”
Adapt IT will continue to operate as an independent business unit inside Volaris Group, under the leadership of Tiffany Dunsdon, CEO of Adapt IT.
“Adapt IT was founded in South Africa 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. Volaris is the right partner for this next phase of Adapt IT’s story. There is a strong alignment with our operating model and approach to acquisitions. Adapt IT is well-positioned to expand to many more countries and customers around the globe. Volaris’ commitment to creating opportunities for knowledge exchange and career development for our people has been consistent through this process. We are ready to seize the moment and excited to enter Adapt IT’s next chapter.”
Volaris Group is an active acquirer of software businesses, with operations in 35+ countries. The company has a successful history of acquiring, operating, and growing vertical market software firms. “Throughout this process, I have been impressed by the Adapt IT team’s professionalism and desire to deliver a great outcome for their customers, shareholders, employees and create value for the communities where they operate. I think we have found a great fit,” continued Dufton.
Continuing transformation and empowerment
Volaris has made a commitment to support Adapt IT in setting up an education trust with a shareholding in Adapt IT. This trust will directly benefit the employees and families of Adapt IT and the general communities in which Adapt IT operates.
Volaris has also committed to supporting Adapt IT to maintain its Level 1 Broad-Based Black Economic Empowerment status. “We have been consistently inspired by the authentic and fulsome commitment that Adapt IT has to transformation and empowerment. This effort is central to Adapt IT’s culture and we are fully bought into this effort,” said Dufton.
Terms of the acquisition
Volaris Group has acquired 63.87% of Adapt IT shares at R7.00 per share. Adapt IT shares will cease trading on the JSE as of Tuesday, 4 January 2022. Shareholders of Adapt IT are referred to the various announcements released on SENS relating to the offer by Volaris to acquire control of Adapt IT.
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