STC’s Giza Systems to spend up to USD 40 mn on acquisitions in 2023. PLUS: Al Baraka Bank + BdC’s Taly?

Giza Systems’ new Saudi owners are planning an acquisition drive: Giza Systems is looking to invest up to USD 40 mn to acquire new companies this year in the wake of its acquisition by Saudi data firm Solutions by STC. The company is looking to acquire stakes in three or four companies and is prepared to allocate USD 5-10 mn to each transaction, Al Mal quotes company CEO Osama Sorour as having said.

The targets: Giza Systems will target companies that have a significant presence in the Saudi market as well as an Egypt-based workforce, according to Sorour. The acquisitions will allow the company to recruit top talent at a lower cost than in KSA, particularly given the recent devaluation of the EGP, he added.

Remember: Giza Systems is under new management. Solutions by STC, a subsidiary of Saudi Telecom (STC), acquired an 89.5% stake in the company last October. Giza employs some 1k people across offices in Egypt, the Gulf, Africa, and the US and serves customers in 25 countries, according to its website.

Expansion plans: The company plans to invest an additional USD 100 mn by 2026 —including USD 30-40 mn this year — to expand into other Gulf countries including Bahrain and Oman, according to Sorour. The investment would be financed by Egyptian or Saudi banks, he said. The company currently has offices in Riyadh, Dubai and Doha.

Giza Systems currently has a market share of 5–10% in Saudi Arabia, according to its estimates, and hopes to up that to 20% in the next three years. The business reported total consolidated revenues of USD 350 mn in 2022, and it aims to hit USD 450 mn in 2023, Sorour said.

AL BARAKA BANK EYEING TALY?

Does Al Baraka Bank want a piece of BdC’s Taly? Al Baraka Bank wants to acquire undisclosed shares in Banque du Caire’s digital paymentssubsidiary Taly and has tapped Elite Consultancy House to conduct a fair value study, Al Borsa reports, citing unnamed sources. Information about the size of investment and the timeline wasn’t disclosed.