The Investment Fund signs an agreement for “Elm” to acquire “Thiqa” Company.

The deal will contribute to maximizing the local value chain, enhancing innovation, and localizing technology and technical skills
The deal will enhance the capabilities of the communications and information technology system, which is one of the most important enablers of the Kingdom’s Vision 2030 and a major pillar of digital transformation.
The Public Investment Fund and Elm, a leader in digital solutions, signed today a share sale and purchase agreement under which Elm will acquire Thiqa Business Services Company, which specializes in smart technical solutions for business services, in a deal worth 3.4 billion riyals.
The deal is expected to be completed after obtaining the required regulatory approvals and fulfilling specific conditions in the agreement.
It supports the development of the local communications and information technology system, which is witnessing rapid development. It will also contribute to achieving the Public Investment Fund’s strategy, which is in line with the objectives of the Kingdom’s Vision 2030, to make digital transformation a pillar for creating highly skilled jobs that suit the requirements of the future, and enhancing the growth of the Kingdom’s economy.

Drive innovation and localize technologies

The deal enhances the growth of the communications and information technology sector, in addition to driving innovation and localization of technologies and knowledge, by strengthening Elm’s national leadership. To lead the sector at the Kingdom level, and maximize the value chain by providing a wide range of ICT products, services, and devices.

Information technology is considered one of the priority strategic sectors of the Public Investment Fund in the Kingdom, as it is an essential enabler for many other major sectors, including entertainment, financial services, health care, transportation and logistics services, and renewable energy.
Shahad Attar, Head of the Technology and Media Investments Department in the Middle East and North Africa region at the Public Investment Fund, said: “The Public Investment Fund is committed to enabling the creation of leading national companies that contribute to driving the development and growth of the local economy, and the Fund’s sale of Thiqa Business Services Company will contribute to” Elm” in enhancing the vital role of the communications and information technology sector, and efforts to localize technology and drive innovation.”

Rationalizing spending and enhancing profits

Mohammed Abdulaziz Al-Omair, CEO of Elm, said: “This deal represents great importance for Elm, as it enhances integration, rationalizes spending, increases profit returns, and provides a number of qualitative advantages for both parties and the sector.
He added: “The combined integrated entity will be more capable of providing qualitative advantages, including providing advanced national smart services to serve the current market requirements and the needs of beneficiaries.”
The deal also contributes to facilitating innovative processes by benefiting from expertise to develop products in the field of business, in addition to the benefit that will be achieved from cost advantages and achieving economies of scale.”
—