JSE-listed IT firm Adapt IT announced on Wednesday that it has entered into a transaction to buy the business of telecoms software firm CDR Live and its subsidiaries trading as LGR for R42.8 million.
In terms of the deal agreement, Adapt IT and its corresponding subsidiaries will buy the businesses of CDR Live, LGR South Africa and LGR Australia, and the issued share capital of and shareholder claims in LGR Analytics, a US-based firm.
The LGR Group, through its operating subsidiaries, LGR Telecommunications, is a specialist solutions provider with an exclusive focus on the global telecommunications industry. With a track record spanning over 18 years, the LGR Group has built a reputation for the provision and management of end-to-end data warehouse and business intelligence systems at leading international operators.
The LGR Group comprises businesses in Mauritius, South Africa, Australia and USA. The South African and Australian businesses constitute the main operating units and the Mauritian business owns the intellectual property. The USA operations provide support for the South African business.
Adapt IT’s Service Provider Solutions , which is the division into which LGR will be integrated, is focused on providing solutions to the Mobile Carrier Network segment. Adapt IT, and specifically SPS, is looking to provide additional value into these environments. The LGR offering will allow it to do just that, by enabling it to extend its service offering into Advanced Network Analytics.
The acquisition of LGR provides Adapt IT with revenue and geographic diversification opportunities. LGR’s experience working with large global telecommunications networks creates bidirectional cross-selling opportunities for Adapt IT, opening up foreign markets to Adapt IT’s other software products and services.
Sbu Shabalala, CEO of Adapt IT, says the numerous synergies between Adapt IT and LGR highlight the value of this acquisition in augmenting Adapt IT’s overall growth strategy, not only in the telecommunications sector in South Africa but also the whole of Africa and in Australia. The acquisition also improves Adapt IT’s foreign currency revenue generation.
“Adapt IT and LGR can benefit from the synergy and scale advantages that already exist to leverage further opportunities to increase revenue and capacity,” says Shabalala.
LGR COO, Lucky Fatsilidis, is excited about the business value that Adapt IT brings to the table. He says that, together, the organisations will be able to fully exploit opportunities in the local and international telecommunications market. As the market has matured, it has become evident that customers need high-quality analytics to both protect their customer bases and to increase their profitability.
“LGR plans to play a meaningful role in Adapt IT’s telecommunications strategy, and to grow the business by adding relevant world-class solutions to the company’s existing product offerings,” says Fatsilidis.