JSE-listed Adapt IT says it will acquire Australia-based Software as a Service (SaaS) business Wisenet for R54 million.
Adapt IT will pay SGD$2.9 million in cash for Wisenet Group and SGD$2.3 million in cash for Wisenet SG.
Founded in 1997, the Wisenet Group operates in Australia, New Zealand and Singapore, with the main office situated in Melbourne, Australia.
The company provides a Software as a Service Learning Relationship Management System (Student Lifecycle Management and Compliance) to vocational training institutions called Registered Training Organisations. Wisenet has 22 employees who will remain with the business.
The purchase consideration for the acquisition is SGD$5.2 million with potential earn-out adjustments over the next three years, Adapt IT said.
By way of rationale for the purchase, Adapt IT said the acquisition will complement its education division growth strategy and will provide Adapt IT with access to key proprietary software, customers and markets in the Australian education sector.
Wisenet is a software-based business that develops its own IP and has an annuity-based revenue model, being SaaS subscriptions, which account for 90% of total revenue. All revenue is earned outside of South Africa in hard currencies.
“The introduction of Wisenet into Adapt IT furthers our ambition to be a leading software provider in our chosen sectors, in Africa and beyond,” said Sbu Shabalala, CEO of Adapt IT.