Arabian Internet and Telecommunication Services Company (solutions) penned a binding offer with France-based Devoteam SAS and ORTLL Investment Limited to acquire a 40% stake in Devoteam Middle East (DME).

In a bourse filing, the Tadawul-listed firm highlighted that the enterprise value stands at AED 726.30 million, equivalent to nearly SAR 741.70 million, on a cash-free and debt-free (CFDF) basis.

DME is a specialised firm that provides digital consultancy and transformation services. It runs its business across the Middle East but it is currently focused on the Saudi market.

The acquisition aims to contribute to solutions’ growth plans and further reinforce its position as the information and communication technologies (ICT) market leader in the Kingdom.

The deal aligned with the telecom firm’s LEAP strategy to expand in promising business lines that would boost the digital transformation for its customers and deliver the best value to its shareholders.

Subject to obtaining regulatory approvals from relevant authorities in Saudi Arabia, the transaction will be financed from solutions’ resources. Meanwhile, solutions appointed Saudi Fransi Capital as a financial advisor for the agreement.

Earlier this month, solutions and National Center for Government Resources (NCGR ) inked a SAR 444.13 million contract.

In the first quarter (Q1) of 2023, solutions recorded an annual growth of 7.42% in net profit after Zakat and tax to SAR 304 million from SAR 283 million.