Abu Dhabi, UAEThursday 24 September 2020

Saudi Arabia's Elm to buy Tabadul from Public Investment Fund

The move will create a 'one stop shop' catering to the logistics sector

The King Abdullah Financial District in  Riyadh. AFP
The King Abdullah Financial District in  Riyadh. AFP

Saudi Arabia’s information security company Elm will acquire digital information services company Tabadul from the kingdom’s sovereign wealth fund, the Public Investment Fund.

Elm said yesterday that it will acquire all of Tabadul’s shares but did not disclose the value of the deal.

The transaction will be completed after the required regulatory approvals are secured.

Tabadul’s current management will continue to lead its operations and will report to the existing board of directors, on which Elm will be represented.

Tabadul’s board will continue to exercise oversight over business until the acquisition is complete.

Once closed, Elm, which is wholly owned by the PIF, can then make any necessary adjustments through Tabadul’s general assembly.

“The combination of Elm and Tabadul will create a one-stop-shop that will cater to the entire logistics value chain, thus accelerating its targeted sector expansion strategy,” said Abdulrahman Aljadhai, chief executive of Elm.

The PIF said the acquisition would contribute to Saudi Arabia’s Vision 2030, a programme that intends to reduce the country’s dependence on hydrocarbons, build a local manufacturing industry and integrate the logistics value chain.

The acquisition is also in line with the fund’s mandate to back digital transformation in important sectors.

“As an active investor, PIF is committed towards the growth of its portfolio companies throughout their business life cycle while seeking opportunities for synergies and collaboration between them,” the fund said.

Tabadul, also known as the Saudi Company for Exchanging Digital Information, provides digital integration for the logistics sector, enabling the exchange of information, goods and services across government and private businesses.

The transaction will allow Tabadul to speed up its new product and service offerings, said Tabadul chief executive Abdulaziz Alshamsi.

Elm provides various technical products, consulting services, digital outsourcing and training to both government and private businesses.

The transaction will allow Tabadul to speed up its new product and service offerings, Abdulaziz Alshamsi, chief executive of Tabadul, said.

Elm provides various technical products, consulting services, digital outsourcing and training to both government and private businesses.

Updated: August 10, 2020 12:36 AM

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