Required for resistance to glycopeptides antibiotics. D-Ala--D-Ala ligase of altered specificity which catalyzes ester bond formation between D-Ala and various D-hydroxy acids; producing a peptidoglycan which does not terminate by D-alanine but by D-lactate, thus preventing vancomycin binding (By similarity). Binds 2 magnesium or manganese ions per subunit. S.coelicolor was found to be of intermediate resistance to vancomycin although it does not produce vancomycin. Belongs to the D-alanine--D-alanine ligase family.