Saudi Arabia’s Elm, a digital solutions firm, has announced its acquisition of Thiqah Business Services Co. from the Public Investment Fund (PIF) for $907 million. This strategic move aims to strengthen the nation’s information and communications technology sector.
In a cash deal, Elm will acquire all 45,000 shares of Thiqah, each valued at SR1,000. This acquisition supports Saudi Vision 2030 by promoting digital transformation, job creation, and economic diversification.
Mohammad Abdulaziz Al-Omair, Elm’s CEO, emphasized that the acquisition will enhance integration, optimize spending, and boost profitability. The combined entity aims to deliver advanced smart services and innovative business solutions while achieving economies of scale.
This transaction, pending regulatory approval, aligns with PIF’s strategy to foster digital transformation and high-impact investments. Shahd Attar from PIF highlighted that the sale will bolster the ICT sector’s role in technology localization and innovation.
The ICT sector is crucial for various industries, including entertainment, finance, healthcare, and logistics. PIF, a major global sovereign wealth fund, has been pivotal in Saudi Arabia’s economic transformation, expanding investments and establishing numerous companies since 2015.
Thiqah’s sale is part of PIF’s commitment to a knowledge-based digital economy, enhancing local content and private sector collaboration. Following the announcement, Elm’s shares fell 4.03% on the Saudi Stock Exchange, closing at SR1,176.2.