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Adapt IT acquires Micros for R120m

By , Portals editor
Africa , 11 May 2017

Adapt IT acquires Micros for R120m

In a deal valued at R120m, JSE-listed Adapt IT Holdings Limited (Adapt IT) has acquired 100% of the Micros South Africa Group (Micros), a provider of integrated software and hardware solutions to the hospitality and retail industries in South Africa and Africa.

The R120m is the total figure, according to Adapt IT, made up of R61m directly and R59m in a loan which will fund the buybacks from the other shareholders as there was a composite deal structure.

The deal positions Adapt IT to pursue opportunities within the hospitality and retail markets, which are expected to experience significant growth in the next three years.

Adapt IT refers to the Research and Markets' Global Hotel and Hospitality Management Software 2016-2020 report, which states that the hospitality management software market is expected to grow at a compound annual growth rate of 6.14% between 2016 and 2020.

Micros specialises in the resale, support and deployment of software and hardware products along with rapidly growing cloud solutions and services for the hospitality industry.

The company's portfolio includes point-of-sale systems, customer loyalty solutions, as well as solutions that automate back- and front-of-house communication. Its hotel management portfolio includes central reservation systems, property management solutions and back-office functions.

Micros also distributes Oracle Hospitality products under value-added reseller agreements with global software vendor Oracle Inc.

According to a statement by Adapt IT, Oracle's hospitality solutions are in use across some 330,000 customer sites in 180 countries globally.

Micros has been on Adapt IT's radar for approximately a year and the companies claim their strategies are aligned.

Sbu Shabalala, CEO of Adapt IT, says Adapt IT is the largest Oracle ISV (Independent Software Vendor) in South Africa, "so it was appealing to extend our capability to become a value added reseller for this flagship Oracle Hospitality product suite."

The value for Micros, according to Adapt IT, is to move from being equity owned to being part of a listed, black empowered software group, who can add value to their day-to-day business,

Micros Managing Director, Paul Stephenson, says, "Our aim is to deliver optimal return on investment to customers by providing a complete solution, consisting of software, hardware, implementation and training using focused best practice methodologies. Micros and Adapt IT's shared customer-focused approach and similar values will ensure that we continue to benefit our customers whilst improving our overall value proposition."

Adapt IT does not envisage any changes to management structure as it "has great confidence in the Micros SA management and delivery teams."

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