AD Ports Group’s digital arm Maqta Gateway is buying TTEK, a developer of border control solutions and customs systems, for $26.7 million to expand its digital trade solutions portfolio.
Maqta Gateway is acquiring 100 per cent of TTEK with an up front payment of $17.1 million, AD Ports said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
TTEK’s solutions use more than 1.5 million risk indicators and artificial intelligence predictive modelling to enhance border security controls and support customs and immigration agencies.
Maqta Gateway aims to leverage TTEK’s research and development centre in Vietnam and its extensive expertise in customs and border modernisation solutions across Africa, Middle East, North America and Australia to strengthen its service offering, the statement said.
“TTEK’s existing trade expertise in the Middle East supports the Group’s ambition to widen its digital trade solutions within the region,” Capt Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group, said.
“The near-term pipeline includes international markets that are strategically important to the Group.”
Established in 2006, AD Ports Group, which owns and operates 10 ports in the UAE, has been expanding its operations globally.
Last month, it signed a 30-year concession agreement with Egypt's Red Sea Ports Authority to develop and operate a multipurpose terminal at Port Safaga to boost operations in the country.
In January, the company signed a partnership with Kazakhstan's state energy company KazMunayGas and a preliminary accord with the country's Ministry of Industry and Infrastructural Development to co-operate in the development of a national marine fleet and coastal infrastructure in the Caspian and Black Seas.
Earlier this month AD Ports signed a funding deal worth $2 billion with a syndicate of 13 regional and international banks to strengthen its financial position.
TTEK, which has its headquarters in Barbados, is on track to deliver revenue of about $8.2 million and earnings before interest, taxes, depreciation and amortisation of about $2.3 million for the financial year 2023, the statement said.
The deal is subject to completion of condition precedents within the next 45 days.
TTEK’s management will be locked in for a period of two years after the transaction, the statement added.
“Incorporating TTEK’s cutting-edge predictive-technology-based solutions into our Single Window solution will improve border security, trade facilitation, customs revenue management and more, thereby strengthening the group’s value proposition as a Single Window solution provider,” said Noura Al Dhaheri, chief executive of digital cluster and chief executive of Maqta Gateway, AD Ports Group.
“Maqta Gateway will continue to pursue opportunities that contribute to the group’s overall integrated digital trade strategy.”
