AKD Research has released an analyst report on Systems Limited (SYS), which recently acquired British American Tobacco SAA Services to accelerate future growth. The report states that during its Board meeting on July 29, 2025, SYS approved the acquisition of British American Tobacco SAA Services (Private) Limited from British American Tobacco International Holdings (UK) Limited.
Following this, the company’s UAE-based associate, Techvista Systems FZ LLC, entered into a multiyear Master Services Agreement for Business Process Outsourcing Services with Accenture (UK) Limited. Accenture will provide AI services as a sub-contractor, intended to be delivered through the BAT SAA Services.
The acquisition of BAT SAA Services is part of SYS’s aggressive mergers and acquisitions strategy aimed at enhancing growth and expanding its market reach. Notably, the company has PKR 3.8 billion in cash and short-term investments to fund this acquisition.
British American Tobacco SAA Services (Private) Limited specializes in establishing and providing Information Technology (IT)-led shared and digital business services. These services encompass, but are not limited to, consumer and customer services through an omnichannel contact center, marketing operations, HR operations, finance operations, and procurement and supply chain-related services across various geographies. This aligns well with the company’s core business process outsourcing offerings.
SYS has also entered into a Share Purchase Agreement that outlines the terms and conditions regarding the acquisition and the total purchase price. However, the completion of this acquisition will remain subject to the satisfaction of conditions precedent and applicable regulatory approvals.
In conjunction with the acquisition, Techvista Systems FZ LLC has entered into a multiyear Master Services Agreement with Accenture (UK) Limited, dated July 29, 2025. This agreement focuses on providing AI-powered global shared services as a sub-contractor through BAT SAA Services. This initiative is part of the company’s “AI-first” strategy, aimed at offering AI as a Service and integrating AI capabilities across all business functions.
We await further clarity on these two transactions before adjusting our valuations.
**Investment Perspective:**
We maintain our ‘BUY’ recommendation on SYS, supported by i) an 18% year-on-year increase in IT exports during FY25, ii) improving gross margins due to consolidation, and iii) a strong presence in the MEA region that positions the company for growth amid increasing IT spending. Our target price for December 2025 is PKR 176 per share, offering potential upside of 48% along with a CY25E dividend yield of 1.5%.
Courtesy: AKD Research
