Canadian software company Volaris Group has become the second company to bid for a stake in local software company Adapt IT.
On Wednesday, Volaris gave Adapt IT a firm intention to acquire more than 50% of its shares, at R6.50 per share. The offer comes on the back of one made by local software company Huge Group to acquire 100% of Adapt IT for R800 million in January.
"The offer will be made by way of a scheme of arrangement to be proposed by Adapt IT to their shareholders. If the scheme is not proposed or fails, Volaris will make a general offer to the Adapt IT shareholders to acquire at least 50% of Adapt IT shares," Adapt IT said in a statement.
Volaris is a subsidiary of Constellation Software, a company that operates in over 100 countries.
"The successful conclusion of the Volaris offer would result in a well-governed and diversified South African technology company being backed by a well-capitalised leading global technology firm keen to support further growth. Adapt IT would come to represent Volaris’ interests on the African continent, a region in which Volaris currently has limited presence but intends to grow in the coming years," Volaris said in its offer letter.
The company will provide further details on the deal by 31 May. In the meantime, Huge Group has been granted a second extension to make its general offer for Adapt IT, from 6 April to 16 April.
