The deal also includes a 34% stake in Giza Arabia, representing the remaining shares that are not owned by Giza Systems Company, for an enterprise value of US$158 million.
The acquisition sum is based on enterprise value, debt, cash and working capital, with solutions by stc planning to fund the acquisition through a combination of banking facilities and cash.
The news follows the agreement solutions by stc entered in April 2021 with Energy Technologies to acquire 89.49% of Giza Systems Company, which is owned by Energy Technologies, in addition to the company acquiring 34% of the unauthorized stake, owned by Giza Systems Company.
Giza Systems is an information technology company that provides services that include systems and applications integration in addition to emerging technologies. It has offices in Saudi Arabia, United Arab Emirates, Qatar, Egypt, and the US to name a few.
The acquisition aligns with the objectives of stc Group in expanding its business across the region and supporting its goals as a leader in digital transformation through its investments in the technology sector.
follows a number of investments recently made by the stc group. At the beginning of the year, it established an Internet of Things company in partnership with the Public Investment Fund. It also announced an investment of one billion dollars in data centres and subsea cables, as well as the launch of a cloud computing company in the Kingdom in partnership with Alibaba Cloud.
The deal is subject to several closing conditions, including approvals from the relevant authorities, such as the General Authority for Competition, as well as other conditions that are organisational and commercial in nature.
