Arabian Internet and Telecommunication Company (solutions) announces the signing of a sale and purchase agreement (SPA) on 04-06-2022G to acquire 89.49% of Giza Systems Company (Closed Joint Stock Company), in addition to 34% of Giza Arabia, which represents the shares that are not owned by Giza Systems Company, for a full cash consideration for the entire acquisition. The acquisition will be based on an Enterprise Value amounting to USD 158 million. It was agreed that the acquisition consideration shall be based on valuation formulas pursuant to the enterprise value, debt, cash and working capital as stated under the agreement terms and condition. solutions intend to fund the acquisition consideration via a mixture of banking facilities and cash.
This comes after solutions signed on last April a binding offer with Energy Technologies to acquire (89.49 %) of Giza Systems Company (LLC), which is owned by Energy Technologies, in addition to solutions acquiring 34% of the unauthorized stake, owned by Giza Systems Company (LLC).
The acquisition represents a strategic step that serves the objectives of stc Group in expanding its business in the region’s markets and moving forward in achieving strategic goals that have dared and enhanced its position as a pioneer in digital transformation through its investments in the technology sector, in addition to enhancing the strength of the private sector in the Kingdom and the ICT market and digital solutions.
The acquisition comes as a continuation of the investments recently made by the group, as it announced at the beginning of this year the establishment of an Internet of Things company in partnership with the Public Investment Fund. It also announced an investment of one billion dollars in data centers and marine cables, and finally the establishment of a cloud computing company in the Kingdom in partnership with Alibaba Cloud and other companies.
It is worth noting that the sale and purchase agreement (SPA) for the acquisition is subject to a number of conditions that must be met, including - but not limited to - obtaining approvals from the relevant authorities, including the approval of the General Authority for Competition, in addition to other conditions, that of an organizational and commercial nature.
It is worth mentioning that Giza Systems is a leading information technology company that was established in 1974. It also provides services that include systems and applications integration in addition to emerging technologies with offices in Saudi Arabia, United Arab Emirates, Qatar, Egypt, the United States of America, and other countries. It serves clients in more than 25 countries around the world.
Source: Press Release