Adapt IT to acquire mobile specialist Conor Solutions
The deal is valued at R80 million.
JSE-listed Adapt IT will acquire mobile technology specialist Conor Solutions for R80 million, the company announced on Monday.
Adapt IT said the acquisition will provide it with access to key proprietary software, customers and markets in the telecommunications space in South Africa as well as key markets in Africa including DRC, Tanzania, Lesotho, and Namibia.
“Conor Solutions operates in the ICT sector focused on mobile technologies providing turnkey technology solutions to mobile operators, financial institutions, enterprises, and SMMEs in Africa and South America,” Adapt IT said in a statement.
Its main competencies include middleware and integration; VAS consolidation; rating charging and bundle management; core network design and optimisation; service development; data monetisation; enterprise mobility; mobile fintech; data analytics and visualisation; mobile app and web portal development; and authorisation, authentication and accounting.
The value of the acquisition, which is expected to be completed on November 30, 2018, will be concluded on a cash and debt-free basis.
The purchase price is made up of an installment of R48 million in cash payable at the deal’s closing, plus a deferred amount of R32 million to be paid, on the closing date, to Adapt IT’s attorneys where it will be held in escrow in an interest-bearing trust call account. The R32 million, plus interest, will be paid over to the sellers 24 months from the closing date.
Conor Solutions’ controlling shareholder is Jed Holdings, whose ultimate beneficial shareholders are Edwin van Zyl, Jacob Oosthuizen, and Duncan de Klerk. The deal is subject to the approval by the boards of Adapt IT, Conor Solutions, Jed Holdings, and the controlling shareholders of Conor Solutions.
The value of Conor Solutions’ net assets as at March 31, 2018, was R13.2 million. The revenue attributable to the net assets for the same period was R87.8 million and profit attributable to the net assets was R17.7 million.