JSE-listed Adapt IT Holdings is acquiring a majority 51% stake in Pretoria-based specialised software company ITS Holdings, for R16-million.

Adapt IT will gain three seats on the ITS board of directors. Following the acquisition, ITS will operate independently to preserve its brand and continue to service its user community.

The acquisition will assist Adapt IT to diversify its client portfolio, predominantly in the public sector, ensuring that the company’s diversification risk is adequately managed.

The acquisition will also assist 
Adapt IT in increasing the group’s annuity revenue earned from the licensing and support of ITS software programmes. Adapt IT and ITS have products and ser-
vices that complement each other, which the companies believe will increase the value customers 
receive.

The companies have synergies in Oracle technologies, as well as domain expertise relating to 
financial and enterprise resource planning systems.

The acquisition will improve ITS’s broad-based black economic-empowerment (BBBEE) credentials, which will facilitate its sustainability in the South African market. It will also strengthen Adapt IT’s presence in the Gauteng market with the added skills increase it receives from its new partner.

“Our companies share similar values and are committed to 
innovation to improve our user 
experience. Together, we are natural partners as the infusion of BBBEE credibility will enable ITS to continue to gain market share in a transformed South Africa,” says Adapt IT CEO Sbu Shabalala.

ITS CEO Derick Jordaan adds that, together, the companies will be able to leverage their position in the education market to accelerate growth by gaining access to selected private-sector market segments.