Systems Limited outlines Confiz deal, growth outlook

Systems Limited has detailed its recent acquisitions and forward strategy during a corporate briefing held on Tuesday. It highlights the purchase of Confiz Limited and improving regional profitability prospects.

Systems Limited (SYS) held its corporate briefing session to discuss the recent acquisitions and future outlook.

 SYS recently announced the acquisition of Confiz Limited, one of Pakistan’s top 3 IT companies, with a strong specialization in retail and CPG segments. Confiz is a 20-year-old business that has largely grown organically.

Read More: CCP Approves Systems Limited’s Acquisition of BAT SAA Services

SYS has acquired this company through a 100% share swap arrangement, as per which, Systems’ shareholders will be diluted by 3.8-4.0% and revenue contribution from this new business will be roughly around 10% of the current business, according to management.

Management indicated that the revenue per employee of Confiz Limited is higher than Systems’, as the company mainly operates in the North American market and is focused on the Microsoft ecosystem. The company also has a direct workforce in America, Europe, and other offshore locations.

The margins and profitability ratios of Confiz are broadly in line with industry trends of growth companies. The company has a diversified client base and has little to no overlap with Systems’ clientele.  Additionally, a few of the company’s clients are also on the Fortune 100 list.

Management expects the transaction to be completed within approximately three months, subject to court and other regulatory approvals.

Regarding the BAT SAA acquisition announced a couple of months ago, management confirmed that the business is now fully integrated, and operations began in November 2025. However, they did not share more information due to NDA constraints.

Several loss-making contracts in the domestic market have already been exited, while some are expected to end this quarter and the remaining in the following quarter. Management expects the region to be profitable going forward. They also highlighted that they are not targeting hyper growth in the Pakistan market; instead, they are focusing on stable and sustainable growth.

 Management noted that growth in the Saudi market has also picked up during this quarter. They further expect momentum to strengthen in 2026,  due to the release of public sector investments that had previously been stuck.

 Management also stated that employee attrition has improved, partly due to visa constraints in the Middle East. Additionally, the company has largely been able to retain its senior leadership.

“We maintain a BUY stance on Systems Limited with the company trading at a 2025E/2026F PE of 22.1x/15.3x,” Topline said.