Elm Acquires Thiqah in $907 Million Deal
Deal News | Jan 22, 2025 | Zawya
Elm, a prominent digital solutions company in Saudi Arabia, has reached a share sale and purchase agreement with the Public Investment Fund (PIF) to acquire Thiqah Business Services Company. The acquisition is valued at $907 million (SAR 3.4 billion) and awaits regulatory approvals. This strategic move aims to bolster the local information and communication technologies (ICT) ecosystem, which is pivotal to Saudi Arabia's Vision 2030. By acquiring Thiqah, Elm seeks to enhance its role in providing advanced national smart services and drive innovation within the sector. The transaction aligns with PIF's strategy to create high-skill jobs and foster economic growth through digital transformation. Elm's CEO, Mohammad Abdulaziz Alomair, emphasized that this acquisition would enhance operational efficiencies, increase profitability, and ultimately meet evolving market needs. PIF, aiming to build national champions in key sectors, sees this sale as a step towards furthering the ICT sector's importance in various industries like entertainment, healthcare, and renewable energy.
Sectors
- Information and Communication Technology (ICT)
- Investment and Private Equity
Geography
- Saudi Arabia – The article covers a major acquisition involving Saudi Arabian entities, Elm and PIF, and is focused on advancing the Kingdom’s Vision 2030 goals.
Industry
- Information and Communication Technology (ICT) – The article discusses the acquisition of Thiqah by Elm, which is expected to strengthen the ICT ecosystem in Saudi Arabia, supporting digital transformation as part of Vision 2030.
- Investment and Private Equity – The Public Investment Fund (PIF) is selling Thiqah to Elm, highlighting PIF's strategy to stimulate growth in strategic sectors and create national champions.
Financials
- $907 million (SAR 3.4 billion) – The deal value for Elm's acquisition of Thiqah from PIF.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Elm | Buyer | Company | Elm is a leading digitization company in Saudi Arabia, acquiring Thiqah to enhance its role in the ICT sector. |
| Public Investment Fund (PIF) | Seller | Government | PIF is one of the world's largest sovereign wealth funds, selling Thiqah to further its strategic priorities in alignment with Vision 2030. |
| Thiqah Business Services Company | Target | Company | Thiqah specializes in smart technology solutions for business services and is being acquired by Elm. |
| Shahd Attar | Person | Person | Head of Technology and Media, MENA Investments at PIF, commenting on the transaction's impact on the ICT sector. |
| Mohammad Abdulaziz Alomair | CEO | Person | CEO of Elm, stated the strategic importance of acquiring Thiqah for operational and market advantages. |