PIF And Elm Finalise Agreement For Elm To Acquire Thiqah Business Services For SAR 3.4 Billion

The Public Investment Fund (PIF) and Elm, a prominent digital solutions provider, have entered into an agreement for Elm to acquire Thiqah Business Services Company. Thiqah specialises in smart technology solutions for business services. The transaction is valued at $907 million (SAR3.4 billion). Completion of the deal is contingent upon regulatory approvals and meeting certain conditions outlined in the agreement.

This acquisition aligns with PIF's strategy to bolster the local information and communication technologies (ICT) ecosystem. It supports Vision 2030's goal of leveraging digital transformation to create high-skill jobs and stimulate economic growth in Saudi Arabia. The deal aims to enhance ICT sector growth, foster innovation, and localise technology by empowering Elm to lead nationally.

The ICT sector is a strategic priority for PIF as it enables other key sectors like entertainment, financial services, healthcare, transport, logistics, utilities, and renewables. By strengthening Elm's position, the transaction seeks to maximise the value chain through a broad range of ICT products and services.

Shahd Attar, Head of Technology and Media at MENA Investments for PIF, stated: "PIF is committed to enabling the creation of national champions which contribute to driving the development and growth of the Saudi economy. PIF’s sale of Thiqah to Elm will contribute to enhancing the vital role of the ICT sector and will strengthen efforts to localize technology and drive innovation."

Elm's CEO Mohammad Abdulaziz Alomair commented on the significance of this transaction: "This is an important transaction for Elm, as it enhances integration, rationalizes spending, increases profitability, and provides qualitative advantages for both parties and the market. The combined integrated entity will be better able to create advanced national smart services to serve market requirements and clients’ needs."

Future Prospects

The merger between Elm and Thiqah is expected to facilitate innovative operations while developing cost-effective business products. This integration aims at achieving economies of scale by offering advanced smart services tailored to market demands. The collaboration promises qualitative benefits for both entities involved.

By focusing on localisation and innovation within the ICT sector, this acquisition underscores PIF's commitment to fostering economic development in Saudi Arabia. The strategic move not only strengthens Elm but also contributes significantly towards achieving Vision 2030 objectives through technological advancements.

With inputs from SPA