Sagtec inks $30 million deal for UAE software expansion

KUALA LUMPUR - Sagtec Global Limited (NASDAQ: SAGT), a software solutions provider with a market capitalization of $70 million and impressive 77.6% revenue growth in the last twelve months, has entered into a Master Dealership Agreement with Dubai-based SMD Tech FZCO, marking a significant step in its international growth strategy. According to InvestingPro data, the company maintains a strong financial health score of 3.59, labeled as "GREAT." Under the exclusive agreement announced today, SMD Tech will distribute Sagtec’s Speed+ Cloud-Based Smart Ordering System in Dubai, committing to a minimum purchase of 10,000 software licenses over five years, which is expected to generate at least $30 million in revenue for Sagtec.

This partnership aims to capitalize on the digital transformation in the United Arab Emirates (UAE), particularly in the retail and food & beverage sectors. Speed+, Sagtec’s cloud-native platform, is designed to streamline order processing, offer real-time analytics, and automate customer engagement.

The UAE’s digital economy is on a robust growth trajectory, with PwC Middle East projecting it to contribute over $140 billion to the nation’s GDP by 2031. Dubai’s position as an innovation hub is strengthened by significant investments in cloud infrastructure and smart technologies. Sagtec appears well-positioned to capitalize on this growth, operating with a moderate debt-to-equity ratio of 0.21 and maintaining a healthy current ratio of 2.01. This environment is ripe for Sagtec’s market entry, especially with Statista forecasting the UAE’s F&B market to exceed $37 billion by 2030 and Grand View Research predicting a 19% CAGR for the Middle East’s cloud-based POS market through 2030.

Kevin Ng, Chairman, Executive Director, and CEO of Sagtec, emphasized the strategic timing and potential for the company’s SaaS dominance in the Middle East, supported by SMD Tech’s local expertise.

Sagtec, beyond its software offerings, also operates power-bank charging stations in Malaysia through its subsidiary, CL Technology (International) Sdn Bhd.

The announcement of this agreement, based on a press release statement, reflects Sagtec’s ambition to secure a foothold in the Middle East’s evolving digital landscape and to create a stable revenue source through its SaaS offerings. The company’s stock has shown strong momentum, delivering a 55% return year-to-date, with the current price of $5.58 approaching its 52-week high. For more detailed analysis and 12 additional investment insights, visit InvestingPro.

In other recent news, Sagtec Global Limited has announced the operational launch of its Speed+ Smart Cloud Ordering Software in Indonesia. The company has delivered the first batch of licenses to the country’s sole distributor, marking the beginning of its expansion in Southeast Asia. This move is part of a Master Dealership Agreement with PT Kiwari Asih Solusi, which is expected to generate at least $30 million in revenue over the next five years. Sagtec’s expansion strategy aims to capitalize on Indonesia’s rapidly growing digital economy, anticipated to reach around $60 billion by 2030. Additionally, Sagtec has introduced an AI-powered chatbot service for Malaysia’s food and beverage sector, integrated with its existing platforms to streamline customer interactions and operations. The company plans to expand this service to Indonesia, Singapore, and Thailand later this year. Sagtec’s CEO, Kevin Ng, emphasized the importance of these digital solutions in meeting evolving customer expectations and enhancing operational efficiency. These developments align with Sagtec’s commitment to providing innovative software solutions across Southeast Asia.

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