Raya Holding Approves Up to $60M Investment for Proposed Egyptian Data Center Acquisition
Raya Holding for Financial Investments has conditionally approved a capital investment of up to $60 million through its subsidiary, Raya Systems, to finance a proposed acquisition of the full equity stake in a data center facility operating in the Egyptian market.
The move is part of Raya Holding’s strategy to expand its presence in Egypt’s digital infrastructure sector, particularly amid growing demand for data center, cloud computing, artificial intelligence, and digital transformation services.
According to a disclosure to the Egyptian Exchange (EGX), the investment will be made through a capital increase in Raya Data Center Services, a subsidiary of Raya Systems. The funds will be allocated to cover the capital portion of the proposed acquisition, with the investment capped at $60 million, equivalent to approximately EGP 3 billion based on indicative exchange rates.
Raya Holding already operates in the data center sector through Raya Data Center Services, which was established in 2012 under Raya Systems. The company provides data center, cloud computing, and managed services to public- and private-sector clients.
The group has also expanded its investments in the sector through a partnership with Africa50, under which Africa50 invested $15 million and Raya Systems contributed $10 million to expand the company’s data center capacity and develop a new Tier III data center in Egypt.
Raya Holding said the board’s approval remains subject to the completion of the proposed acquisition, the signing of binding agreements, and obtaining all required regulatory and legal approvals. If the transaction is not completed, the approval will not create any funding obligation for Raya Holding or its subsidiaries.