Systems Limited eyes acquisition of NdcTech
- Transaction is subject to compliance with the applicable laws
Systems Limited, among Pakistan's leading software houses, is eyeing acquisition of National Data Consultant (Pvt.) Limited (NdcTech), a digital banking implementation service provider, announced the company in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.
The company said that it has entered into a term sheet with the sponsor shareholders of NdcTech for the acquisition of 100% of the issued and paid-up share capital of NdcTech.
The transaction is subject to compliance with the applicable laws, including, obtaining the necessary corporate and regulatory approvals, read the filing.
“The management of both parties will now start discussions to finalise terms for the acquisition, the share purchase agreement and other transaction related documents and upon finalization, terms and conditions shall be presented to the Board of Directors for their final consideration and approval,” added the notice.
Interview with Asif Peer, Systems Limited
Earlier, the board of directors of Systems Limited in its meeting held on April 27 had authorised the management of the company to consider and finalise terms in relation to potential direct and indirect acquisitions, involving inter alia the 100% acquisition of entities providing IT services locally and internationally, including software development, software maintenance and system integration.
As per the latest financials posted to the bourse for the three-month period ended March 31, 2022, Systems Limited nearly doubled its consolidated bottomline to Rs1.2 billion.
This expansion was due, in large part, to the massive 75% year-on-year surge in the group topline. The net profits are also supported substantially by non-core gains recorded under ‘other income,’ which continue to give amidst PKR woes.
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