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Volaris Group, a subsidiary of the Canadian-listed Constellation Software Inc., has announced the acquisition of a majority stake in the South African Adapt IT Holdings, effective Jan. 3.
According to a statement filed with the Johannesburg Stock Exchange (JSE), Volaris acquired a 63.87-percent stake in Adapt IT at a unit price of R7 ($0.44).
The company also disclosed that it has met all statutory requirements and conditions necessary for the takeover. Consequently, Adapt IT will delist from the JSE from Jan. 4.
An excerpt of the statement filed with the JSE reads: “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.”
Founded in 1996 by Sbu Shabalala, Adapt IT is a South Africa-based technology company that offers high-tech software services in sectors ranging from education to energy. It has a strong presence in more than 55 countries around the world with over 10,000 customers.
Following its merger with another software development company, Infowave, the company migrated to the main board of the JSE in 2008.
Meanwhile, Volaris is a wholly-owned subsidiary of Constellation Software Inc., a Canadian software company with a presence in more than 35 countries.
The acquisition will result in a diversified South African software company, as Adapt IT now represents Volaris’s interests in Africa, where the latter sees tremendous growth potential.
The deal will enable Volaris to expand its geographical presence and grow its customer base across the globe.
Commenting on the recent development, Adapt IT said in a statement: “Both companies have a strong values-based culture with a continuous focus on investing in their employees, a global footprint, a history of the 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.”
