MIS board signs SAR 84.5 mln contracts with Edarat Communications

Logo of MIS

Al Moammar Information Systems Co.’s (MIS) board of directors approved awarding and signing two contracts valued at SAR 84.5 million - including value-added tax (VAT) - with Edarat Communications and Information Technology Co. (related party).

Under the first contract valued at SAR 57 million, which is valid for 18 months, Edarat will provide data centers services, the company said in two separate statements to Tadawul, today, Jan. 23.

On the other hand, Edarat will provide Iaas cloud hosting services under the second 60-month contract valued at SAR 27.5 million to support a service known as SaaS.

The financial impact of the first contract is expected to appear starting from Q1 2022 and last 18 months, while that of the second contract is forecast from Q1 2022 for five years.

MIS owns 50% of Edarat, the company added, noting that both deals were signed within the ordinary course of business and did not include any preferential privileges. The contracts will be approved during the next general assembly meeting.