JSE-listed Adapt IT has acquired 100 percent of the Micros South Africa to get a foothold in the hospitality and retail industries in South Africa and the rest of Africa.
The Durban-based tech firm will spend R62 million to buy Micros.
The acquisition of Micros, which is a leader in its vertical market, creates an entry into the hospitality industry, a new vertical for Adapt IT, further diversifying its revenue mix.
Micros has over 20 years’ experience and over 300 employees specialising in the resale, support and deployment of software and hardware products along with rapidly growing cloud solutions and the provision of professional services for the hospitality industry.
It’s portfolio of products and services help with the management of hotels, retailers and food and beverage facilities across large corporates, small and medium-sized enterprises and independent businesses.
The restaurant management portfolio includes point-of-sale systems, customer loyalty solutions, as well as solutions that automate back- and front-of-house communication. The hotel management portfolio includes central reservation systems, property management solutions and back-office functions.
According to Research and Markets’ Global Hotel and Hospitality Management Software 2016-2020 report, the hospitality management software market is expected to grow at a compound annual growth rate of 6.14% between 2016 and 2020. The report also named Oracle as the top vendor in this market.
This targeted acquisition is in line with Adapt IT’s strategy of planned acquisitive growth and allows the company to further expand, strengthen and reinforce its customer base and solutions set, specifically in the hospitality industry.
Sbu Shabalala, CEO of Adapt IT, says the numerous synergies between Adapt IT and Micros highlight the value of this acquisition in augmenting Adapt IT’s overall growth strategy, not only in key sectors in South Africa but also in certain markets in Africa.
“Adapt IT and Micros can beneFIt from the synergy and scale advantages that already exist to leverage further opportunities to increase revenue and capacity.”
“The addition of Micros will enhance the overall Oracle capability within Adapt IT, create an entry into the hospitality sector based on deep vertical industry expertise, and support our continued growth in South Africa and the African market.”
