JSE-listed IT firm Adapt IT announced on Monday that it has acquired mobile specialist Conor Group for R80 million to strengthen its telecoms solutions division.
The acquisition will see Adapt IT improve its diversification to more markets in the continent and in South America.
Conor, founded in 2007, is a fast-growing and dynamic software business that employs 60 highly-skilled professionals and provides high-performance telco and mobile financial service solutions, covering areas such as the core network applications, enterprise mobility, big data and analytics, and mobile payments to the telecommunications industry in 10 countries across Africa and South America.
Conor’s cutting-edge micro-services software stack, designed for highly-scalable, highly-available, and high-performance private and public cloud deployments, is used to support 2 billion mobile data transactions per day; facilitate 150 million SMS deliveries per day; 100 million USSD transactions per day; 50 million advert deliveries per day; supporting 13TB of enterprise data mobility traffic per month- for consumption by over 13,000 subscribers.
The acquisition of Conor improves Adapt IT’s revenue and geographic diversification as the Conor customer base creates cross-selling opportunities in local and foreign markets for the Adapt IT telecommunications software solutions.
“The Adapt IT telecommunications division solution offering is strengthened by the Conor acquisition with our customers benefiting from the technology synergies leveraged through this transaction, further enhancing opportunities to enable our customers to Achieve more.” said Sbu Shabalala, CEO of Adapt IT.
Conor Solutions operates in the ICT sector focused on mobile technologies providing turnkey technology solutions to mobile operators, financial institutions, enterprises, and SMMEs in Africa and South America.
The acquisition will provide Adapt IT with access to key proprietary software, customers and markets in the telecommunications space in South Africa as well as key markets in Africa including DRC, Tanzania, Lesotho and Namibia.
The value of the net assets that are the subject of the Acquisition as at 31 March 2018 was R13.2 million. The revenue attributable to the net assets that are the subject of the Acquisition for the year-ended 31 March 2018 was R87.8 million. The profit attributable to the net assets that are the subject of the Acquisition for the year-ended 31 March 2018 was R17.7 million.
Conor CEO, Chris Breytenbach, is excited about the value the synergies with Adapt IT bring.
“The two organisations will be able to fully exploit opportunities in the local and international telco market as Conor plans to play a meaningful role in Adapt IT’s telecommunications division’s strategy and growth by adding relevant world-class products to the existing solution offering.”