Adapt IT buys CQS in R217m deal
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Johannesburg - Adapt IT is continuing with its strategy of growing partially through acquisitions as it buys CQS Technology Holdings in a deal worth R217 million.
Its purchase of CQS is in line with its strategy of planned acquisitive growth and allows it to further expand and strengthen its customer base and solutions set, it says in a statement issued on Monday.
It notes CQS will bolster its expansion into the financial services sector.
CQS provides niche audit, financial and risk management software services and solutions to financial professionals, corporates and the public sector in South Africa and Africa.
In the year to June, acquisitive growth accounted for 24 percent of its total turnover boost of 42 percent to R575 million, with organic improvements accounting for the balance of its gains.
CQS has more than 4 000 customers in 30 countries.
Adapt IT CEO Sbu Shabalala says “Adapt IT and CQS can benefit from the synergy and scale advantages that already exist to leverage further opportunities to increase revenue and returns. The entire CQS leadership and operational teams will remain with the business.”
He adds: “The addition of CQS will augment our financial services presence by adding the accounting and auditing professions as a vertical, and support our continued growth in South Africa and into the African market.”
Adapt IT has more than 570 employees operating from all major centres in South Africa. It provides specialised IT solutions to the education, mining and manufacturing, energy, telecommunications and financial services sectors in 24 countries across Africa, Australasia, Europe, North America and South America.
In its most recent financial year, it bought telecommunications software provider, AspiviaUnison, which was the major driver of acquisitive growth contribution. AspiviaUnison develops cloud based communications management software solutions, deployed in corporates and telecommunications carriers.
A further offshore acquisition was in the education sector, as it bought Student Management Software Systems, in New Zealand, which also aided its revenue.IOL