Adapt IT to buy telecom operator
Shares in Adapt IT closed 6.2% up at R6.71 on Wednesday after the information technology group said it would buy LGR Telecommunications for $5m.
LGR operates in Mauritius, SA and Australia.
It provides and manages data warehouse and business intelligence systems for telecommunications firms.
LGR would be integrated into Adapt IT’s service provider solutions division, which targets the mobile carrier network sector, Johannesburg-based Adapt IT said.
The acquisition would allow Adapt IT to grow its advanced network analytics operations.
"LGR’s experience working with global telecommunications networks creates bi-directional cross-selling opportunities for Adapt IT, opening up foreign markets to Adapt IT’s other software products and services," the company said. The deal would diversify its revenues and geographic footprint.
All revenue was denominated in hard-currency "from customers outside of SA, which creates improved revenue diversification for Adapt IT shareholders", it said.
The legal effective date of the acquisition was July 1 2017. In August, the group said it would retain a large proportion of its profits for growth activities as part of its plans to create a global specialised software business with annualised turnover of R3bn by 2020.
Adapt IT bought EasyRoster for R87m in August 2016, while in July 2017, it acquired Micros SA, a provider of software, hardware, systems integration, consulting and support to the hospitality industry.