JSE-listed Adapt IT Holdings Limited on 22 November 2017, announced that it will acquire the business of CDR Live Limited and its subsidiaries, trading as LGR Telecommunications, as a going concern.
The transaction encompasses four global companies and is worth approximately $5 million.
Adapt IT’s Service Provider Solutions (SPS), 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, Adapt IT Chief Executive Officer 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.
Lucky Fatsilidis, LGR Chef Operations Officer 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,” concludes Fatsilidis.