Adapt IT struggles to grow but sees acquisitions as the way to go
The software provider is being hurt as the economic slowdown in SA starts to take its toll
Software provider Adapt IT, which grew quickly through a series of acquisitions in recent years, has seen its growth grind to a halt as the economic slowdown in SA starts to bite. “Adapt IT’s primary growth market in SA was stagnant,” said CEO Sbu Shabalala. This led to a slowing in its revenue and, in turn, its organic growth for the first half of the year. The group, which has grown half-year revenue to end-December to R667m in 2018 from R261m in 2014, saw turnover fall 1% in its latest results. Though the local economy negatively impacted the group, Shabalala said its recent acquisitions positioned the group to grow in the second half of the year. Adapt IT says it’s looking to make further acquisitions, following its purchase of Melbourne-based Wisenet Group for about R53.6m late in 2018 and telecoms group, LGR Telecommunications for an undisclosed amount in November 2017. In the past year it also bought a hospitality software firm, Micros SA, as well as Conor Group, a specialist...
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