Saudi Arabian digital security firm Elm Company said on Wednesday that it had agreed to acquire business services firm Thiqah from the kingdom’s Public Investment Fund (PIF) in a deal valued at 3.4 billion riyals ($906 million).
Elm signed a cash-based share purchase agreement with sovereign wealth fund PIF to acquire Thiqah following discussions that started in 2023, it said in a bourse statement.
The company offers services in information security, consulting, credit information exchange, and data centre operations.
Its shares jumped 5% at the open to trade at 1,286 riyals on Riyadh’s Tadawul stock exchange.
Thiqah is fully owned by PIF, which also holds a majority stake in Elm.
“The acquisition supports Elm’s growth ambitions and will reinforce its position as a national provider in the digital services space,” Elm said.
PIF, which has around $925 billion in assets under management, is the chosen vehicle of Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler, to drive an economic agenda aimed at weaning the Gulf country’s economy off oil.
The crown prince took charge of PIF in 2015 and the fund has since helped local companies grow into national champions.
The transaction is expected to close once regulatory approvals are received and certain conditions under the agreement are met.
HSBC Saudi Arabia is serving as the financial adviser to Elm on the transaction.
Source: Reuters.com