Pakistan’s leading software house, Systems Ltd is ready to acquire NDCTech, a digital banking implementation service provider. As per PSX filling, the Systems Limited has entered into a term sheet with the sponsor shareholders of National Data Consultant (Pvt.) Limited (NdcTec) for acquiring 100 percent of the issued and paid-up share capital of NdcTech.
Management of Systems Limited and NdcTech to finalize the acquisition
A meeting between the authorized board of directors of both companies took place in April to consider and finalize the direct and indirect acquisitions, involving inter alia the 100% acquisition of entities providing IT services locally and internationally, including software development, and software maintenance, and system integration. Asif Peer, CEO of Systems Limited, said; “NdcTech has become a regional market leader in the core and digital banking solutions with an impressive blue-chip customer base and highly skilled and engaged employees.”
The filing states that the management of both parties will now start discussions to finalize 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. However, it is subject to compliance with the applicable laws, including obtaining the necessary corporate and regulatory approval.
The combination of strength
Both NDCTech and Systems Limited have delivered a market-leading performance locally and internationally. Given the recent industrial shifts, the management of both companies has decided to combine the strength of both entities to serve customers better.
The Systems Limited operations have been vastly expanded in the past few years, including establishing a subsidiary(Systems Arabia) and investing in an e-commerce company, Jomo. While, the NDCTEch has a rich client base in Pakistan, the Middle East, Africa, and the Asia Pacific region. Moreover, it is the regional partner of Temenos, which has over 3,000 financial institutions across the globe, including 41 of the world’s top 50 banks.