STC unit buys 40% stake in Devoteam Middle East

Solutions/X

Arabian Internet and Communications Services Company – known as Solutions and a wholly-owned subsidiary of Saudi Telecom Company – has acquired a 40 percent stake in regional IT consultancy company Devoteam Middle East for AED 726.3 million ($197.74 million).

The stake buyout comes in line with Solutions’ strategy to expand into new business lines and markets to enable digital transformation, the state-run Saudi Press Agency reported, citing a statement by Saud-listed Solutions.

The acquisition paves the way for a broader and more diversified business portfolio, said Solutions CEO Omer Abdullah Alnomany.

• Saudi university developing AI for early diabetes detection
• Saudi is ‘young market’ for video surveillance tech
• Saudi IT company invests $5m in OpenAI

France-based Devoteam and Ortll Investment agreed to sell the minority stake in June 2023. 

Devoteam will retain control of the subsidiary, ensuring continuity of the management team, Devoteam group executive vice president and managing partner of Devoteam Middle East Osama Ghoul said last year.

The French company is a digital, cloud, cybersecurity and data consulting company operating in 20 countries in Europe, the Middle East, and Africa.  

In November 2023, Devoteam said it will provide access to Google cloud’s services and new technology solutions to its clients in Saudi Arabia

Earlier this month, Saudi Aramco said it more than doubled the capital allotted to its venture capital arms to $7.5 billion as part of its investment in new energy and digital technologies. 

The additional $4 billion will be given over the next four years to Aramco Ventures, where Aramco had already invested $3 billion. It will take Aramco’s overall venture capital allocation to $7.5 billion, including the $500 million venture capital fund Wa’ed Ventures.

Saudi Arabia has become the leading destination for venture capital in the region, with funding for Saudi startups rising 159 percent to $2.36 billion in 2023. 

The ministry of communication and IT has a SAR600 million fund for AI technology projects and a SAR250 million fund for tech startups.