Karachi: Systems Limited has received judicial approval to proceed with its merger with Confiz Pakistan (Private) Limited, marking a significant development in the regional technology sector. The merger, sanctioned by the Honourable Lahore High Court on May 6, 2026, is set to streamline operations between the two entities, effective from January 1, 2026.

In a detailed disclosure on May 29, 2026, Systems Limited outlined the steps leading to this milestone. The Board of Directors had initially approved the acquisition on December 10, 2025, via a resolution passed through circulation. This decision was subsequently communicated in a letter dated December 11, 2025. The merger aims to integrate Confiz into Systems Limited under a Scheme of Arrangement, adhering to the Companies Act, 2017, specifically sections 279 to 283 and 285(8).

According to information available from the Pakistan Stock Exchange (PSX), the necessary consents and approvals from shareholders, creditors, and regulatory bodies have been successfully obtained, fulfilling all legal prerequisites for the merger. This aligns with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the Pakistan Stock Exchange Limited.

The court, in its order, expressed satisfaction with the merits of the merger, noting that it does not prejudice the interests of shareholders and creditors. With the scheme deemed effective from January 1, 2026, Systems Limited and Confiz will now proceed with the next steps. These include setting a Record Date, identifying eligible Confiz shareholders, and issuing shares as outlined in the merger scheme.

This merger represents a strategic consolidation within the technology sector, setting the stage for enhanced operational efficiency and market presence. The approval marks a critical juncture for Systems Limited as it navigates this transition, reinforcing its commitment to growth and innovation in the industry.