Riyadh: The Public Investment Fund (PIF) and Elm, a leading digital solutions provider, have signed a share sale and purchase agreement for Elm to acquire Thiqah Business Services Company. Thiqah is known for its expertise in smart technology solutions for business services. The deal is valued at $907 million (SAR3.4 billion) and is expected to be completed once regulatory approvals are secured and certain conditions are met as outlined in the agreement.
According to Saudi Press Agency, the transaction aims to bolster the local information and communication technologies (ICT) ecosystem and aligns with PIF's strategy under Vision 2030. This vision focuses on digital transformation to create high-skilled jobs and support the growth of the Saudi economy. The deal is set to enhance the ICT sector's growth, drive innovation, and localize technologies and knowledge. By empowering Elm to lead the sector nationally, the agreement seeks to maximize the value chain by offering a wide range of ICT products, services, and devices.
The ICT sector is identified as one of PIF's strategic priority investment areas, serving as a key enabler for other pivotal sectors such as entertainment, financial services, healthcare, transport and logistics, utilities, and renewables.
Shahd Attar, Head of Technology and Media, MENA Investments at PIF, emphasized PIF's commitment to fostering national champions that contribute to the growth of the Saudi economy. The sale of Thiqah to Elm aims to bolster the ICT sector's role in localizing technology and driving innovation.
Elm CEO Mohammad Abdulaziz Alomair stated that the transaction is significant for Elm, as it enhances integration, optimizes spending, boosts profitability, and provides advantages for both parties and the market. The newly integrated entity will be better positioned to develop advanced national smart services, meet market demands, and cater to client needs. It will also facilitate innovative operations and capabilities to develop cost-effective products while achieving economies of scale.