Optimiza buys 70% stake in Royah for $13m

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Optimiza and Royah executives at the signing

Optimiza has acquired 70% of Saudi systems integrator and developer Royah, in a $13 million deal.

Royah, one of the largest Oracle Certified Advantage Partners in the Kingdom, has a large list of customers in government and the private sector, including Jeddah Municipality, the Foreign Ministry, King Faisal Specialist Hospital and Saudi Telecom Company, Mobili, Arabsat, MTN Yemen, Savola Group and Al Marai Company.

Al Malaz Group, the owner of Royah, will continue to hold 30% of the shares in the new merged entity. The deal is part of Optimiza's ongoing drive to build its services capabilities across the Middle East.

Rudain Kawar, chairman of Optimiza said: "This investment of $13 million is a continuation of Optimiza's strategy for expansion in the Kingdom of Saudi Arabia, adding to the previous acquisitions of Aregon Consulting and G-Tech in 2007, combined, the three companies will contribute to more than 55% of Optimiza's revenues to be generated from the Saudi market."

Royah's expertise includes Work Structure Reengineering / Business Process Reengineering, Implementation, Upgrading, Migration, Integration, Customization and post-implementation support.

Hussam Al Deen Al-Mabrook, CEO of Royah said: "This transaction provides added value, depth and strength to Royah's capabilities to implement large-scale projects in the Gulf, bolstering existing services in the fields of IT and consulting in the telecommunication, banking, insurance, distribution, industry, healthcare, education and the government sectors, all of which are areas of expertise available at Optimiza. This partnership falls in line with our strategy that aims at reinforcing our market position, by utilizing the knowledge and expertise present at both Royah and Optimiza to offer a consolidated and comprehensive services package to all Arab markets."

Hazem Malhas, CEO of Optimiza, commented: "Optimiza's team is proud of this milestone; today's accomplishment reflects the realization of our vision of growth and expansion in the Gulf region, to enable us to serve our clients' needs and requirements. We believe this merger will noticeably increase Optimiza's strategic presence in one of the fastest IT markets in the world, bringing Optimiza's total professional workforce to 550 engineers and consultants, 200 of which will be located in Saudi Arabia."

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