Logo ofMiddle East Healthcare Co. (Saudi German Hospital)
Middle East Healthcare Co.’s (Saudi German Hospital) board of directors approved on June 2, the extension of the contract withAfkar Consulting Co.in the field of communications and information technology (Megamind). 
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The contract pertains to the implementation of the company’s comprehensive digital transformation project for its hospitals and has been extended for an additional five years.
In a statement on Tadawul, Saudi German said that the extension includes the continued providing of IT management and operation services as part of the digital transformation project. This will be in line with current market rates, the company’s operational and technical needs, and under the same original contractual terms and conditions, without any preferential terms or benefits.
The contract was originally signed on Jan. 10, 2021, with a total value of SAR 382.94 million, distributed as follows:
– Implementation of software systems over three years: SAR 264.68 million
– Annual maintenance contract over five years: SAR 43.13 million
– Software license costs over seven years: SAR 75.13 million
The company clarified that the previously announced value of SAR 264.68 million was mistakenly reported, and the correct total contract value is SAR 382.94 million, as stated above.
Under the contractual arrangements, SAR 264.68 million will be paid directly to Megamind for the implementation of technical and operational work.
Moreover, the remaining SAR 118.26 million will be paid by Middle East Healthcare through Megamind to the parties supplying licenses and services, in accordance with the contract’s cost breakdown.
The company added that part of the work has already been completed, and the remaining value of the contract as of today stands at SAR 134.45 million.
It also noted that the Chairman Sobhi Abduljaleel Batterjee, Vice Chairman Makarem Sobhi Batterjee, Board Member Khalid Abduljaleel Batterjee, and Board Member Sultan Sobhi Abduljaleel Batterjee all have an indirect interest in Megamind.
The contract extension will be presented to the upcoming ordinary general meeting (OGM) for approval, with a commitment to disclose any material developments in due course.
The statement clarified that there is no direct impact on the financial statements, as the extension aims to complete the ongoing project.
According to data compiled by Argaam, Middle East Healthcare said in December 2020 that said its independent board members recommended awarding the contract for digital transformation of the company’s hospitals to Megamind IT Solutions Co., a related party.
Logo ofMiddle East Healthcare Co. (Saudi German Hospital)
Middle East Healthcare Co.’s (Saudi German Hospital) board of directors approved on June 2, the extension of the contract withAfkar Consulting Co.in the field of communications and information technology (Megamind).
For more news on listed companies
The contract pertains to the implementation of the company’s comprehensive digital transformation project for its hospitals and has been extended for an additional five years.
In a statement on Tadawul, Saudi German said that the extension includes the continued providing of IT management and operation services as part of the digital transformation project. This will be in line with current market rates, the company’s operational and technical needs, and under the same original contractual terms and conditions, without any preferential terms or benefits.
The contract was originally signed on Jan. 10, 2021, with a total value of SAR 382.94 million, distributed as follows:
– Implementation of software systems over three years: SAR 264.68 million
– Annual maintenance contract over five years: SAR 43.13 million
– Software license costs over seven years: SAR 75.13 million
The company clarified that the previously announced value of SAR 264.68 million was mistakenly reported, and the correct total contract value is SAR 382.94 million, as stated above.
Under the contractual arrangements, SAR 264.68 million will be paid directly to Megamind for the implementation of technical and operational work.
Moreover, the remaining SAR 118.26 million will be paid by Middle East Healthcare through Megamind to the parties supplying licenses and services, in accordance with the contract’s cost breakdown.
The company added that part of the work has already been completed, and the remaining value of the contract as of today stands at SAR 134.45 million.
It also noted that the Chairman Sobhi Abduljaleel Batterjee, Vice Chairman Makarem Sobhi Batterjee, Board Member Khalid Abduljaleel Batterjee, and Board Member Sultan Sobhi Abduljaleel Batterjee all have an indirect interest in Megamind.
The contract extension will be presented to the upcoming ordinary general meeting (OGM) for approval, with a commitment to disclose any material developments in due course.
The statement clarified that there is no direct impact on the financial statements, as the extension aims to complete the ongoing project.
According to data compiled by Argaam, Middle East Healthcare said in December 2020 that said its independent board members recommended awarding the contract for digital transformation of the company’s hospitals to Megamind IT Solutions Co., a related party.
