Volaris acquires Adapt IT

Volaris Group Inc. (Volaris) has acquired Adapt IT Holdings Limited (“Adapt IT”) for R7 per Adapt IT share, effective 3 January 2022. Volaris is a wholly owned subsidiary of Constellation Software Inc., a publicly traded company in Canada.

All conditions and regulatory approvals, including those from various competition authorities, the Takeover Regulation Panel, and the JSE, have now been met. The agreement was also contingent on Volaris acquiring more than half of Adapt IT’s stock. Volaris now owns 63.87 percent of Adapt IT. As a result of the agreement’s implementation, Adapt IT will be delisted from the JSE on January 4, 2022.

Volaris Group, headquartered in Toronto, is a leading international provider of vertical market software and services to a variety of industries.

Volaris acquires and expands market-leading software companies that create specialized software solutions. Volaris has more than 120 companies in 30 vertical markets and a presence in 35+ countries.

“The acquisition is a fantastic success story for South Africa.” Adapt IT was founded in 1996, went public in 1998, and has successfully grown its customer base to over 10,000 customers in 55 countries worldwide. Adapt IT will be able to expand to many more countries and customers around the world as a result of this acquisition,” said Tiffany Dunsdon, CEO of Adapt IT.

As a result of the acquisition, a diverse South African software company is now backed by a well-capitalised leading global technology firm eager to support future growth.

Volaris and Adapt IT are an excellent match. Both companies have a strong values-based culture with a constant focus on investing in their employees, a global footprint, a history of long-term acquisitions, and a wealth of experience in the acquisition of software companies.

The acquisition brings direct foreign investment into South Africa, as well as opportunities for additional growth capital investment and the transfer of best practices.

The capabilities of Adapt IT in the Pan African, Asia Pacific, and European markets enable market development and expansion within those regions, with project delivery supported from South Africa, where the majority of software development capabilities exist.

The DNA of Adapt IT is very similar to that of Volaris. Its vertical market software specialisation, global distribution, and a track record of successful acquisitions make it an excellent fit. However, the fact that it was founded and is headquartered in Africa, as well as its empowered status in South Africa, distinguishes it as a service provider and an acquirer.

The fact that Adapt IT has maintained its Level 1 B-BBEE status is critical. Beyond compliance, transformation is a strategic imperative and goal for the business.

Volaris is committed to assisting Adapt IT in maintaining this status. To create a permanent legacy, an independently governed Education Trust will be formed and become a shareholder in the business, primarily for the benefit of employees and their dependents. “Investment in our people and internal advancement are critical to our ethos and success,” Dunsdon said.

Volaris has expressed confidence in Adapt IT’s leadership team, which includes Tiffany Dunsdon as CEO, Nombali Mbambo as Chief Financial Officer, and Tony Vicente as Chief Operating Officer.

“We are pleased to have successfully concluded the deal,” said Adapt IT’s management team of the Volaris acquisition.

The Adapt IT team is excited to become a part of the Volaris group, drive higher organic growth, and resume our acquisition strategy in earnest. “We are now embarking on an exciting new chapter of growth,” Dunsdon said.

“Adapt IT is a solid business with an experienced leadership team,” Michael Dufton, Portfolio Leader at Volaris, added. We had been following the company’s success for some time and thought it would be a good fit. Volaris has ambitions to invest in African markets, and we are now well positioned to do so thanks to Adapt IT’s regional presence. I am pleased to welcome Adapt IT to the Volaris family and look forward to working with the team.”