Elm to Acquire Thiqah for $907 Million
Deal News | Jan 22, 2025 | Zawya
In a strategic move to enhance the information and communication technologies (ICT) ecosystem within Saudi Arabia, the Public Investment Fund (PIF) has signed a definitive agreement to sell Thiqah Business Services Company to Elm for approximately $907 million. Elm is a leading digital transformation company in the Kingdom, set to strengthen its position with this acquisition. This move is pivotal for Saudi Arabia's Vision 2030, aiming to leverage digital transformation to fuel economic growth, foster innovation, and create future-ready jobs. As per the agreement, the acquisition is subject to regulatory approvals and conditions. This acquisition fits into PIF’s strategy to enable the growth of key national sectors, including technology, entertainment, healthcare, and logistics, in alignment with its Vision 2030 goals. By reinforcing Elm's capacity to deliver an expansive array of ICT products and services, this transaction underscores the advantages of integrating and localizing technology solutions in the national context. The move demonstrates PIF's commitment to nurturing national technological champions, enhancing the ICT sector's contribution to Saudi Arabia’s economic expansion. Elm, led by CEO Mohammad Abdulaziz Alomair, expects this acquisition to rationalize spending, increase profitability, and leverage economies of scale while enriching national smart service capabilities.
Sectors
- Information and Communication Technology (ICT)
- Investment and Sovereign Wealth Fund
Geography
- Saudi Arabia – The primary entities, PIF, and Elm, are based in Saudi Arabia and the transaction supports the country's Vision 2030, aiming to diversify and strengthen the national economy.
Industry
- Information and Communication Technology (ICT) – The transaction is centered around the acquisition of Thiqah, a company specializing in ICT solutions, highlighting the critical role of technology in Saudi Arabia's economic strategy.
- Investment and Sovereign Wealth Fund – PIF, as a sovereign wealth fund, is crucial in strategizing national investments, particularly in ICT, aligning with Saudi Vision 2030.
Financials
- $907 million – The valuation of the deal for Elm to acquire Thiqah from PIF.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Elm | Acquiring Company | Company | A leading digital solutions company in Saudi Arabia focused on driving digital transformation and technological advancements across sectors. |
| Thiqah Business Services Company | Target Company | Company | Specializes in smart technology solutions for business services, positioned to enhance Elm's capabilities in the ICT sector. |
| Public Investment Fund (PIF) | Selling Company | Company | Saudi Arabia's sovereign wealth fund responsible for investing in strategic sectors to complement the Vision 2030 economic goals. |
| Shahd Attar | Spokesperson from PIF | Person | Head of Technology and Media, MENA Investments at PIF, emphasizing PIF's role in national economic development through strategic ICT investments. |
| Mohammad Abdulaziz Alomair | CEO of Elm | Person | Chief executive of Elm, spearheading the acquisition strategy to enhance integration, profitability, and national smart service capabilities. |