SOLUTIONS signs deal to acquire 89.49% of Giza Systems, 34% of Giza Arabia for $158 million

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 intends to fund the acquisition consideration via a mixture of banking facilities and cash.

This comes with reference to the announcement made by Arabian Internet and Telecommunication Company (solutions) on 04-04-2022G on the signing of a binding offer with Inergia Technologies for Information Systems, and others related to the acquisition of 89.49% of Giza Systems Company, in addition to 34% of Giza Arabia, a subsidiary of Giza Systems Company, which represents the shares that are not owned by Giza Systems Company.

The sale and purchase agreement (SPA) is subject to a number of pre-closing conditions, including -but not limited to- obtaining the approval from the relevant authorities such as the approval of General Authority for Competition, as well as other regulatory and commercial conditions. It is worth to note that there is no related party associated with this acquisition.