ZainTECH buys digital counterpart STS. Meet the dealmakers

16 October 2023 Consultancy-me.com 2 min. read

Dubai-based ZainTECH has significantly bolstered its capabilities with the acquisition of Specialized Technical Services Company (STS), Jordan-headquartered digital transformation company with over 350 staff.

Part of Zain Group, ZainTECH is an IT services and solutions provider specialising in areas such as cloud, cybersecurity, digital transformation, and big data. The company also has a managed services business, focused on cyber and data centres.

With the addition of STS, ZainTECH now roughly doubles the size of its team to 600 staff, working across the United Arab Emirates, Saudi Arabia, Jordan, Bahrain, Kuwait, and Iraq. The deal also deepens ZainTECH’s vendor capabilities, among others across the Cisco, Dell, IBM, Microsoft, and Oracle technologies.

ZainTECH buys digital counterpart STS. Meet the dealmakers

Commenting on the deal, Andrew Hanna, ZainTECH CEO said, “The agreement to acquire STS, with its talented team, years of expertise and impressive customer base, will amplify ZainTECH’s capabilities to provide clients with cutting-edge and comprehensive digital transformation solutions, solidifying our position as leaders in the industry and driving digital transformation in Jordan and across the region.”

Established in 1989, STS is a major player in Jordan’s digital transformation landscape, and also has a track record in countries such as Saudi Arabia, the United Arab Emirates, Bahrain, and Iraq. The company currently serves over 500 customers across industries, including banking and financial, governmental, health, education, and telecommunications.

“STS is renowned for its advanced hybrid multi-cloud solutions, robust managed cloud services, and comprehensive cybersecurity offerings, backed up by a state-of-the-art security operations center, infrastructure and system integration capabilities, along with licensing solutions,” explained Bader Al-Kharafi, Vice-Chairman and CEO of Zain Group.

The deal continues an M&A campaign for ZainTECH, which launched in October 2021 following the unification of Zain Group’s technology teams under a single roof. Since its inception, ZainTECH has acquired BIOS Middle East and AdFolks.

Dealmakers

The latest bolt-on, that of STS, was advised on by a joint team from PwC and Strategy&. DLA Piper was the legal advisor for ZainTECH. Seller STS received financial advice from Lumina Capital Advisers, and legal support from Clyde & Co.

Commenting on the deal, Andrew Nichol, partner at Lumina Capital Advisers, said: “This is an exciting combination, reflecting the digital transformation opportunities across the region. It was a pleasure to work with Clyde & Co, and with PwC, Strategy& and DLA Pip at the other side of the table.”

On the joining of forces, Ramzi Zeine, Co-Founder and Executive Chairman of STS said: “The momentum gained by ZainTECH since its launch in 2021 has been nothing but remarkable, and we are excited to collaborate and support its growth and development from our standing point in Jordan and from our regional operations. This marks a strategic leap in the history of STS, and we are extremely proud to join forces with ZainTECH.”