Systems Ltd (PSX: SYS), Pakistan’s largest listed technology and IT services exporter, has approved the acquisition of Confiz Pakistan (Pvt) Ltd in a transaction that will be executed through a court-sanctioned merger rather than a straightforward cash purchase.
In a notice to the Pakistan Stock Exchange dated 11 December 2025, Systems said its board – via resolutions passed through circulation on 10 December – had “considered and approved” the acquisition of Confiz Pakistan (Pvt) Ltd and “all its direct and indirect shareholdings in the Confiz Group of Companies” by way of an “amalgamation / merger” of Confiz “with and into” Systems.
Confiz, meanwhile, has also publicly confirmed that a definitive agreement has been signed. In a 11 December 2025 announcement published on its website, Confiz said it had entered into a definitive agreement to be acquired by Systems Ltd, describing Systems as “the region’s largest global IT services and consulting” organisation, and noting that the acquisition remains subject to customary regulatory and corporate approvals. Confiz framed the deal as a “strategic global expansion” move, and said it would continue operating as an independent business unit supported by talent hubs across multiple regions, adding that the combined entity will operate in “13+ countries”.
While the public disclosures so far do not provide a valuation or a timeline, the structure signals an important point: Systems appears to be using its listed equity as acquisition currency to consolidate capabilities in a fast-evolving market where scale, specialised skills (especially in cloud and AI), and access to premium enterprise clients increasingly determine who wins the next generation of contracts.
Systems Ltd occupies a unique position in Pakistan’s capital markets: it is one of the few large, globally oriented technology companies on the PSX, and it has steadily expanded from a domestic software house into a multi-region services exporter spanning consulting, engineering, and business process services.
On its investor-facing company profile, Systems traces its corporate licensing to 1977–78 and positions itself as “the country’s first Information Technology company” providing business solutions and business process outsourcing (BPO), also describing itself as Pakistan’s largest software exporter. The company says it has delivered “48+ years” of sustainable, profitable growth and employs “over 9000+ client-focused employees globally”.
One of the more distinctive features of Systems’ ownership story is the emphasis on employee ownership. The company profile notes that Systems was meant to be an employee-owned enterprise and says that leaders and top-performing employees, past and present, own 84% of the company’s stock. That matters because, in services businesses where talent retention and delivery quality directly affect revenue, ownership alignment is often framed as a competitive advantage – not just a governance curiosity.
In terms of what it actually sells, Systems presents itself as a full-spectrum technology services organisation. Its corporate profile describes proven expertise in deploying and supporting ERP, mobile, BPM, turnkey and complex software solutions. The company’s services menu spans digital consulting and strategy, digital commerce and business applications, plus a sizeable data and analytics stack that includes data modernisation, advanced analytics, data management and generative AI offerings. It also lists cloud operations and migration, cloud application development and integration, managed services, digital infrastructure services, security and emerging technologies.
Beyond “build and transform” work, Systems also offers business process services – an increasingly important part of the export story for Pakistani tech firms because it provides recurring revenues and deeper client relationships. Systems’ disclosed offerings include BPO, contact centre services, digital marketing, finance and accounting outsourcing, staff augmentation and legal process outsourcing.
Third-party ecosystem alignment is another pillar. Systems publicly lists alliances with major global platforms including Microsoft, Temenos, IBM, AWS, SAP and Salesforce. Microsoft, in particular, features prominently across Systems’ positioning: a Microsoft partner case study describes Systems as “well diversified” across BPO, omnichannel contact centres, data integration, application development, and cloud and digital services around the world. Microsoft also notes Systems has been a Microsoft partner since 2012 and highlights multiple competencies across cloud, data analytics, DevOps and ERP, among others.
This breadth is important context for the Confiz deal. Systems is not buying a company to “enter IT services” so much as to add depth in specific, commercially valuable capability clusters – particularly Microsoft business applications and AI-driven enterprise transformation, where demand is expanding rapidly.
Confiz is smaller than Systems but has built a clear identity in a particular corner of the enterprise technology stack – one that is especially relevant as corporations shift from bespoke systems to platform-led transformation.
On its website, Confiz describes itself as a global technology services company that has been helping businesses “build, evolve & scale since 2005”. It says it serves clients ranging from SMEs to Fortune 100 firms, with particular emphasis on retail, consumer packaged goods (CPG) and related sectors. Confiz also highlights its partner ecosystem, stating it is recognised as a trusted Google Cloud and Microsoft Solutions Partner.
What stands out most in Confiz’s service catalogue is the concentration around Microsoft’s enterprise stack – exactly the capability set that many Pakistani IT exporters want to deepen as global clients standardise on a smaller number of strategic platforms.
Confiz lists Microsoft Dynamics 365 (including customer engagement and finance & operations), managed services, implementation, upgrades and Copilot-related work as a core part of its offering. Alongside that, it emphasises data and AI services – ranging from data platform modernisation and analytics to “enterprise AI” – as well as cloud services, consulting and migration/integration work, and Microsoft Power Platform services such as Power Apps, Power BI and Power Automate.
Confiz’s own homepage messaging underscores the “AI-forward” orientation: it markets programmes and proof-of-concepts around generative AI chatbots and highlights work tied to Dynamics 365 Copilot, as well as initiatives built on Azure OpenAI services.
Confiz also presents itself as having moved beyond pure services delivery into solutions and accelerators. Its published solutions list includes items such as a Dynamics 365 automotive solution, a “Gen AI virtual assistant” and an HR and payroll solution for Dynamics 365 – signals that the firm has been productising parts of its implementation experience, a strategy that can improve margins and create stickier client relationships when executed well.
In scale terms, Confiz says it has grown to a workforce of more than 700 team members, with offices spanning North America, the Middle East, Pakistan and Estonia. That is meaningfully smaller than Systems, but large enough to represent a serious delivery engine – particularly if integrated into Systems’ broader multi-region footprint.
Confiz’s deal announcement adds further colour on strategic positioning. It describes Confiz as bringing engineering, data and AI expertise to help large enterprises modernise technology landscapes and scale AI, and it highlights “two decades” of specialisation in retail and CPG. (Confiz) This is notable because retail and CPG are sectors where platform-heavy transformations (ERP, CRM, data platforms, demand forecasting and supply chain tooling) are often broad, multi-year programmes – precisely the sort of work where Systems’ scale and Confiz’s platform depth could be mutually reinforcing.
On paper, Systems’ acquisition of Confiz looks like a classic services-industry logic deal: combine scale with specialised capability, then attempt to drive growth through cross-selling, deeper platform partnerships and larger deal eligibility.
Systems already markets a wide portfolio and has long highlighted its alliances with global platforms, including Microsoft. Confiz’s identity, however, appears more tightly concentrated around the Microsoft ecosystem – Dynamics 365, Power Platform, and now Copilot-led enterprise workflows – alongside data and AI. For Systems, adding a Microsoft-heavy services specialist could deepen expertise in a commercial segment that tends to carry strong demand, recurring managed services revenues, and long-term client lock-in when implementations are successful.
Both firms talk about AI, but in slightly different languages. Systems positions itself as a broad digital transformation partner across data integration, application development, and cloud and digital services. Confiz, by contrast, markets AI more explicitly – highlighting generative AI programmes, Copilot-related productivity tooling, and AI-driven data modernisation journeys. In a market where “AI capability” is quickly shifting from marketing slogan to procurement requirement, Systems may view Confiz as a way to accelerate credibility and delivery capacity in a fast-moving segment.
Systems’ Q3 2025 directors’ report describes its performance by verticals and notes that BFS (banking and financial services) remains the highest revenue contributor, while telecom is among the fastest-growing segments, and retail and technology are among the most profitable. Confiz’s own narrative puts significant weight on retail and CPG specialisation. If Systems can cross-pollinate Confiz’s retail/CPG expertise into its global sales engine – and, conversely, introduce Confiz’s Microsoft business applications stack into Systems’ BFS and telecom client base – the combined group could widen both its pipeline and its wallet share across existing accounts.
Confiz’s published list of “solutions” (including a Gen AI virtual assistant and industry-targeted Dynamics 365 solutions) suggests it is trying to package repeatable IP rather than purely selling hours. Systems, with its larger platform, may be able to scale those accelerators more widely, turning niche tools into broad offerings – though doing this well typically requires disciplined product management and clear go-to-market ownership.
Systems has explicitly disclosed that Systems shares will be issued to Confiz shareholders as the consideration for the merger. That structure typically helps the buyer preserve cash for other investments (or further acquisitions) and aligns incentives, because the selling shareholders participate in the combined entity’s future performance. At the same time, it introduces the usual trade-off: dilution for existing shareholders, making execution and synergy realisation more important.
Confiz has said it will continue operating as an independent business unit after the deal, backed by a network of regional talent hubs, and has positioned the transaction as a route to scale faster while strengthening customer value delivery. If Systems adopts a “federated” integration approach – keeping Confiz’s delivery culture and leadership intact while leveraging Systems’ sales reach and corporate backbone – it may reduce the risk of talent attrition, which is often the biggest value destroyer in services M&A.
The timing of the Confiz acquisition is notable because it comes as Systems is reporting a strong run in financial performance – potentially giving it the confidence (and equity-market credibility) to attempt a larger consolidation move.
In its third-quarter 2025 report covering the nine months ended 30 September 2025, Systems reported consolidated revenue of Rs57.42 billion, up 18.9% year-on-year from Rs48.31 billion. Over the same period, consolidated net profit rose 46.3% to Rs7.94 billion (from Rs5.43 billion), while gross profit and operating profit increased 33.1% and 32.8%, respectively.
The company explicitly highlighted a key headline for investors: it exceeded its full-year 2024 operating profit and net profit in just nine months of 2025. It disclosed full-year 2024 operating profit of Rs8.15 billion and net profit of Rs7.46 billion, and said it surpassed those levels by 3.8% and 6.5% respectively over the nine-month period.
Systems also reported improved profitability ratios, stating gross margin and operating margin stood at 29.7% and 16.3%, respectively, and attributed the performance to growth, operational efficiencies, productivity improvements, billing rate improvement and optimisation of costs – particularly fixed costs. It also discussed the impact of currency movements, noting an exchange loss in the quarter that was offset by gains earlier in the year, and nonetheless said the quarter’s absolute net profit was higher than Q2.
From an operating standpoint, Systems’ directors’ commentary points to continued strategic focus on key verticals, noting BFS remains the highest revenue contributor, telecom among the fastest-growing, and retail and technology among the most profitable – with the company citing the development of AI use cases to support growth in targeted segments. That matters when considering Confiz’s integration: Confiz’s Microsoft business applications and AI-led data work could be positioned as an accelerator within these very vertical priorities.
In short, Systems is approaching the Confiz transaction from a position of strength: growing revenues, expanding profits, and an explicit drive to scale AI-related capabilities. The open question for investors is whether the proposed merger can compound that momentum – adding specialist Microsoft and AI depth without losing the delivery discipline and talent stability that have underpinned Systems’ recent results.
If the scheme progresses smoothly through approvals and the Lahore High Court process, the deal could mark one of the more consequential consolidation steps in Pakistan’s IT services landscape: a large listed exporter using equity to absorb a Microsoft-centric peer with an explicit AI and productisation layer – at a time when global clients are simultaneously cutting discretionary spend and doubling down on platform-led transformation.
The post Systems Ltd will acquire Confiz appeared first on Profit by Pakistan Today.