Dubai: AD Ports Group's digital entity Maqta Gateway is getting into the deal-making space, by acquiring TTEK Inc., a developer of border control solutions and customs systems. The move should 'reinforce' the former's market position as a 'leading digital trade and holistic single-window solution provider'.
The 100 per cent ownership in TTEK - headquartered in Barbados - comes to $26.7 million, with an upfront payment of $17.1 million. Maqta Gateway’s existing digital trade solutions portfolio will thus receive a boost through incorporating border optimisation management solutions, which utilise AI, machine learning and advanced risk analytics.
TTEK’s solutions use more than 1.5 million risk indicators and AI predictive modelling to establish more reliable border security controls.
"The comprehensive custom 'Single Window' solution provided through this acquisition has high demand in international markets, including Central Asia," said Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
'Single window' opportunities
Maqta Gateway aims to leverage TTEK’s R&D hub in Vietnam and its record in customs and border modernisation solutions in Africa, Middle East, North America and Australia to strengthen its service offering on the unified Single Window solution.
"TTEK demonstrated compelling proficiency and extensive market knowhow in developing and implementing customs and border optimisation solutions across several international markets," said Dr. Noura Al Dhaheri, CEO of Digital Cluster and CEO of Maqta Gateway, AD Ports Group. "Incorporating TTEK’s predictive-technology-based solutions into our 'Single Window' solution will improve border security, trade facilitation, customs revenue management and more.
"Maqta Gateway will continue to pursue opportunities that contribute to the Group’s overall integrated digital trade strategy."
The transaction is subject to completion of condition precedents in the next 45 days. TTEK is on track to deliver revenue and EBITDA of around $8.2 million and $2.3 million in financial year 2023 (March year-end). (All company contracts are in USD, with no exposure to currency foreign exchange.)
TTEK’s management will be locked-in for a period of 2 years post-transaction.
