Adapt IT buys Swicon360 for R11,7m
The JSE-listed IT company will use a combination of cash and shares to acquire the Gauteng-based SAP specialist.
Fast-growing JSE-listed technology company Adapt IT has acquired SAP specialist Swicon360 for R10,4m in cash plus shares worth R1,3m.
Swicon360, which was established 12 years ago, provides business process outsourcing services for the SAP ERP Human Capital Management solution, including payroll processing, human resources management, employee and manager self-service and training. The Sandton-based company employs 40 people.
Adapt IT says the acquisition of Swicon360 provides it with the SAP expertise it needs to allow it to extend services to existing clients in the mining and manufacturing sectors and remove barriers to entry in new sectors.
“Swicon has a compelling proprietary business offering, complemented by a blue-chip client base, which will benefit from the group’s wider offerings,” Adapt IT says in a statement to shareholders. “The group also has many clients which run SAP and which will benefit from the Swicon solutions.”
The acquisition is dependent on the finalisation of a new licence agreement with Swicon360 and SAP.
R9,4m of the cash offer is payable on closing of the deal, with the balance of R1m payable 12 months after closing. A million Adapt IT shares must also be issued after 12 months.
Adapt IT, still a small-cap stock with a market capitalisation of R164m, has been one of the best performing companies on the JSE in the past 12 months. The counter has added 120% in that time. It’s up by 34% in the past three months. — (c) 2012 NewsCentral Media