Abu Dhabi – Mubasher: Maqta Gateway, the digital arm of AD Ports Group, has acquired TTEK Inc, a developer of border control solutions that is based in the island country Barbados, to endorse its market position as a leading digital trade and holistic Single Window solution provider.
The total purchase consideration for the 100% ownership acquisition (enterprise value) stands at $26.70 million.
AD Ports noted in a bourse disclosure that there is an upfront payment of $17.10 million.
However, the transaction is subject to the completion of condition precedents within the coming 45 days. It is worth mentioning that all contracts of the acquired company are in USD, with no exposure to currency foreign exchange.
Furthermore, TTEK’s management will be locked-in for two years post-transaction.
The takeover transaction is expected to extend Maqta Gateway’s existing digital trade solutions portfolio through the incorporation of border optimisation management solutions. This will be carried out by utilising artificial intelligence (AI), machine learning, advanced risk analytics, and other solutions.
TTEK is on track to achieve nearly $8.20 million in revenue in addition to earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $2.30 million in FY23 (March year-end).
Managing Director and Group CEO of AD Ports, Mohamed Juma Al Shamisi, commented: “The acquisition of TTEK Inc. will bring near-term and sustained synergistic benefits to AD Ports Group, including fast time-to-market delivery and significant sector expertise. The comprehensive custom Single Window solution provided through this acquisition has high demand in international markets, including Central Asia.”
The digital arm of the listed firm will leverage TTEK’s R&D hub in Vietnam as well as its expertise in customs and border modernisation solutions across Africa, Middle East, North America, and Australia to reinforce its service offering on the unified single-window system solution.
Al Shamisi added: “TTEK’s existing trade expertise in the Middle East supports the Group’s ambition to widen its digital trade solutions within the region. The near-term pipeline includes international markets that are trategically important to the Group.”
In 2022, the Abu Dhabi-based group registered AED 1.26 billion in net profits attributable to the owners in addition to AED 5.51 billion in revenue.
