Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Who let the dogs order? Sixty60 now delivers for Fido

      18 June 2025

      Starlink to South Africa: ‘We are ready to invest’

      17 June 2025

      Vodacom CEO Joosub bags R71m in pay – but taxman will take a big cut

      17 June 2025

      Major rift opens between Microsoft and OpenAI

      17 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025
    • World

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Adapt IT in R43m telecoms software acquisition

    Adapt IT in R43m telecoms software acquisition

    By Staff Reporter22 November 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    JSE-listed technology services group Adapt IT is acquiring CDR Live for R42.8m in cash in a deal that will expand its footprint in South Africa and Australia and give it a toehold into the US market.

    The deal is being structured through four transaction agreements, in terms of which Adapt IT will acquire CD Live, the issued share capital of and shareholder claims in CDR subsidiary, the US-based LGR Analytics, and the businesses of its subsidiaries LGR South Africa and LGR Australia, as well as LGR Telecommunications South Africa and LGR Telecommunications Australia.

    The LGR Group, through its operating subsidiaries, is a specialist solutions provider with an exclusive focus on the global telecoms industry, Adapt IT said in a statement to shareholders on Wednesday. It was founded 18 years ago and provides data warehouse and business intelligence systems to operators.

    CDR Live is a software-based business that owns its own intellectual property and has annuity-based revenue streams

    There is also a contingent earn-out amount, which will be determined based on the performance of the business for the financial year commencing 1 July 2017 and ending 30 June 2018, limited to a maximum R31.2m, which will be settled via the issue of Adapt IT shares in the second half of next year.

    In relation to LGR Analytics, the purchase consideration is to be determined based on the earnings before interest, tax, depreciation and amortisation (Ebitda) achieved for two years after the award of a specified contract by the business, by no later than 30 June 2018, limited to a maximum purchase consideration of US$1m. Failing that, the purchase price will be $1. The value of the net assets that are the subject of the acquisition as of 28 February 2017 was $2.8m, while Ebitda was $659 000. The assets reported a loss after tax of $1.9m, primarily from a software amortisation charge of $1.9m, Adapt IT said.

    “CDR Live is a software-based business that owns its own intellectual property and has annuity-based revenue streams,” Adapt IT said in its note to shareholders. “Its intellectual property and customer base, together with its experience working with large global telecoms networks, creates a more diversified customer base and provides bidirectional cross-selling opportunities for Adapt IT, opening up foreign markets for Adapt IT’s other software products and services globally.”

    It said the acquisition provides revenue and geographic diversification. “All revenue is hard-currency-denominated from customers outside of South Africa, which creates improved revenue diversification for Adapt IT shareholders.”

    Adapt IT shares were trading at R6.40 at 12.24pm in Johannesburg. The counter has shed 60% of its value since the beginning of the year, making it one of the worst performing shares on the JSE in 2017.  — © 2017 NewsCentral Media



    Adapt IT CDR Live LGR Analytics top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBackspace: ‘Black(ish) Friday’
    Next Article SABC wants DStv to pay to carry its channels

    Related Posts

    New CEO for Adapt IT

    4 February 2025

    Tiffany Dunsdon on Adapt IT’s wild year – and fighting off a hostile bidder

    21 January 2022

    The best-performing tech shares on the JSE in 2021

    3 January 2022
    Company News

    Sage brings together HR leaders to explore the future of payroll and people management

    18 June 2025

    Altron: a brand journey, a birthday celebration and a bet on Joburg’s future

    17 June 2025

    7 benefits of social media integration in WordPress

    17 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.