GO to Acquire 51% Stake in EjadTech
Deal News | Dec 13, 2024 | Zawya
Etihad Atheeb Telecommunication Company, known as GO, has announced its intention to acquire a majority stake in EjadTech. The company signed a binding memorandum of understanding on December 11, 2024, for a 51% share of EjadTech's capital, valued at SAR 86.70 million. The acquisition was approved by an ordinary general assembly meeting and is anticipated to impact GO's financial results in Q3, ending December 31, 2024. This strategic move comes as GO reported a net profit increase of 4.81% for the six months ending September 2024, highlighting its strong financial position and strategic growth plans.
Sectors
- Telecommunications
- Technology Services
Geography
- Saudi Arabia – Both Etihad Atheeb Telecommunication Company and EjadTech are based in Saudi Arabia, and the acquisition is taking place within the context of the Saudi Arabian market.
Industry
- Telecommunications – The acquisition involves Etihad Atheeb Telecommunication Company (GO), a key player in the telecommunications sector, aiming to expand its operations with the stake in EjadTech.
- Technology Services – EjadTech operates in the technology services sector, and the acquisition of its shares represents a strategic move by GO to enhance its technological capabilities.
Financials
- SAR 86.70 million – This is the total value of the acquisition deal for a 51% stake in EjadTech.
- SAR 105.33 million – The net profit of Etihad Atheeb Telecommunication Company for the six-month period ending September 30, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Etihad Atheeb Telecommunication Company (GO) | Bidding Company | Company | GO is the acquiring company looking to purchase a 51% stake in EjadTech. |
| EjadTech | Target Company | Company | EjadTech is the target company in which GO is acquiring a 51% stake. |