Saudi Arabia’s Elm Company has agreed to buy Thiqah Business Service Company, a wholly owned unit of the Public Investment Fund (PIF), for SAR3.4 billion ($906 million).
Elm says the buyout will support its growth in the digital services space, localise technology and drive innovation.
The completion of the acquisition will be subject to obtaining regulatory approvals.
The deal will be funded through Elm’s own resources and banking facilities, it said in a filing on the Saudi bourse on Wednesday.
Thiqah, a digital services provider, was established in 2012 and operates through more than 100 partners globally. The company reported a net profit of SAR180 million and revenue of SAR1.6 billion in 2023, compared to SAR129 million and SAR1.7 billion in 2022.
The financial statements of Thiqah will be consolidated within Elm’s financial statements post-transaction.
Elm appointed HSBC Saudi Arabia as the Financial Adviser and AS&H Clifford Chance Law Firm as the legal adviser for the deal.
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