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The Competition Commission has approved Canadian software company Volaris Group's offer to acquire Adapt IT.
Volaris made its bid for Adapt IT in April, pitting itself against local telecommunications company, Huge Group, which made its offer in January.
Huge was offering Adapt IT shareholders 1.37% of its shares for each Adapt IT share, while Volaris made a R7 cash offer per share. However, 87% of Adapt IT’s shareholders voted in favour of Volaris’ deal.
On Monday, the commission approved the merger between Volaris and Adapt IT, saying that the deal was unlikely to result in "a substantial prevention or lessening of competition in any relevant markets".
However, both Adapt IT and Volaris had to agree to ensure that historically disadvantaged people will have a degree of ownership in the company. They also agreed to establish a trust that will hold the shares of Adapt IT workers. Adapt IT will delist from the JSE once the deal is finalised.
Adapt IT provides software and digital solutions to the education, hospitality, financial, communication and energy sector and Volaris provides similar services.
