Computer Network acquires RayaTech

Abu Dhabi based Computer Network Systems has bought a major stake in RayaTech, which deals in call centre and customer service management solutions. Negotiations between the two started last September.

With this deal, CNS expects to expand RayaTech's reach into new markets within the region and, next year, push for contracts within Europe. In the UAE, RayaTech, set up in 1998, has been associated with projects for Etisalat, Commercial Bank of Dubai and Abu Dhabi Police.

"We saw in RayaTech a company which had this software that had great potential. With CNS coming on board as a major shareholder, we believe that it can be made into a much bigger entity," said Tony Alam, managing director of CNS.

The value of the deal was not disclosed. On whether there was a provision in the agreement which would allow CNS to hike its stake in RayaTech at a later date, Alam said: "There is. But our priority is to retain the talent that exists in RayaTech right now. RayaTech will retain its name and operational independence. Right now, it is hiring more people to develop its business further."

RayaTech develops a major portion of its solutions in-house, apart from integrating them with components from vendors such as Intel and IBM.

"I strongly believe we have today the ingredients of a successful recipe that will not only have an extremely positive impact on how RayaTech will do business in future, but on the overall IT practice in the Middle East," said Mohammed Khatib, general manager of RayaTech.

As for CNS, which came into being in the late 1980s, new markets beckon in Qatar and Oman, and also has set eyes on Iraq. Apart from the UAE, it has developed a strong presence in Saudi Arabia. Markets such as Jordan and Egypt are not in the priority list right now, Alam added.

On its prospects for 2004, "We had a solid year in 2003, and it is our expectation that 2004 will be just as good. Last year, there was a bit of a slow down in the first four months or so, but some major deals happened in July and August leading up to a strong second half."

In the past, CNS has been associated with projects for Etisalat, Dubai Ports Authority and Dubai Internet City.

Mergers and acquisitions are seemingly becoming popular all of a sudden within the region's IT sector. Just recently, there was a merger between Amlaki and DragonShape, two IT firms offering solutions for the real estate industry. According to market sources, more could be in the offing.

Said Alam, "The RayaTech deal represents our first, but it certainly is not the last one."