Saudi Arabia’s digital security firm, Elm Company, has announced its acquisition of Thiqah, a business services firm, from the Public Investment Fund (PIF) for 3.4 billion riyals ($906 million). This acquisition is part of Elm’s strategy to enhance its position in the digital services sector.
The deal was reached through a cash-based share purchase agreement with PIF, following discussions initiated in 2023. Elm, which specializes in information security, consulting, credit information exchange, and data center operations, saw its shares rise by 5% on the Riyadh stock exchange.
Thiqah, wholly owned by PIF, and Elm, in which PIF holds a majority stake, are both key players in Saudi Arabia’s economic transformation plan led by Crown Prince Mohammed bin Salman. This plan aims to diversify the kingdom’s economy beyond oil reliance.
The transaction is pending regulatory approvals and fulfillment of certain conditions. HSBC Saudi Arabia is advising Elm on this transaction.