Adapt IT Holdings Acquires 100 Percent of Swicon360, a BPO services specialist in SAP® ERP HCM

Adapt IT Holdings Limited has acquired 100 percent of Swicon360 (Pty) Limited in a deal worth R11,7-million

October 29, 2012

Leading innovative IT services and specialised solutions provider Adapt IT Holdings Limited has acquired 100 percent of Swicon360 (Pty) Limited in a deal worth R11,7-million effective, 1 October 2012.

Swicon, established in 2000, is an SAP® services partner that specialises in providing business process outsourcing (BPO) services for the SAP ERP Human Capital Management (SAP ERP HCM) solution to clients across diverse sectors, deployed in a cloud environment. These services include payroll processing, human capital management services, employee and manager self service, end user support and training. Swicon was one of the first providers of outsourcing services powered by SAP software in South Africa. It has a highly qualified total staff of over 40 employees located at the company’s offices in Bryanston, Johannesburg.

Swicon’s BPO services for SAP ERP HCM optimise business performance and help deliver lower cost and higher service levels to businesses and individual employees in complex and distributed geographic environments.

“Swicon provides Adapt IT additional depth and expertise in SAP technology and solutions required to extend value-added services to our existing customers in mining and manufacturing, and helps remove barriers to entry into new sectors, while strengthening our presence in Gauteng,” says Adapt IT Holdings CEO Sbu Shabalala. “Swicon has a compelling proprietary business offering, Swicon 360, complemented by a blue chip customer base, which will benefit from the Group’s wider offerings. The Adapt IT Group, in turn, has many customers with SAP installations, who we believe will further benefit from Swicon’s solutions and services.”

“The acquisition will open up new revenue streams for Adapt IT in support of SAP solutions – including BPO and cloud services – while enabling Swicon to grow beyond its traditional client base,” says Swicon CEO Markus Bucher. “Swicon is a successful and established business with a highly qualified and experienced staff. Through our longstanding partnership with SAP, we can provide additional benefits to Adapt IT’s existing client base, which includes many current users of SAP solutions.”

The purchase consideration will be settled in cash payments totalling R10,4-million, funded from Adapt IT’s existing cash resources, and the issue of 1 000 000 Adapt IT shares valued at R1,3-million.

The Adapt IT Group, with over 300 employees throughout South Africa, operates through business divisions led by a core team of executives under a single Adapt IT Group brand providing a variety of specialised turnkey IT solutions and services to the education, mining & manufacturing and financial services sectors. Swicon will form part of the manufacturing and mining division. The Group has over 100 customers in South Africa, East Africa, Australasia, United States and Europe and its services and solutions span the complete IT life-cycle from consulting and application design through to delivery and support.