Solutions Strategic M&A - Giza Systems Acquisition
Giza acquisition fits well with solutions' M&A strategy
The transaction completed on the 3rd of October 2022
Transaction details
Acquisition of 88.19% in Giza Systems and 34% in its Saudi subsidiary (Giza Arabia -
the remaining 66% share capital in Giza Arabia are already owned by Giza Systems)
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Balance of 11.81% in Giza owned by the retained Giza management team
☐
The purchase consideration was SAR 466 mn of which SAR 160 mn were identified
as intangible assets and SAR 193 mn was recognized as goodwill
Critical personnel will be locked in
Transaction timeline
4th April 2022
Tadawul announcement about the signing of a binding offer for acquiring 89.49% of
Giza Systems and 34% of its subsidiary Giza Arabia
4th October 2022
Tadawul announcement about the completion of Giza Systems and Giza Arabia
acquisition on the 3rd of October 2022
Strategic Rationale
☐
Financial Rationale
Good strategic fit - Giza ticks two boxes for solutions:
1. Strong presence in new geography: Egypt
2. It brings strong expertise in application integration, development and
management, allowing solutions to widen its offering and strengthen its one-
stop-shop proposition
Giza will continue to be run separately in the short term
Giza will remain a separate legal and operational entity with a distinct market
positioning in Egypt
Giza was acquired at an attractive EBITDA multiple of 6.6x compared to 20.9x for
solutions
solutions expects to realize revenue synergies through project cross-selling and
up-selling and from new client targeting and acquisition on the back of a stronger
portfolio
solutions
by sic
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