RIYADH — Al Elm Information Security Company (Elm) Sunday, announced the signing of a share purchase agreement to acquire the entire shares (100%) of the Saudi Company for Exchanging Digital Information (Tabadul) from the Public Investment Fund (PIF). The closing of the transaction is subject to securing required regulatory approvals.

Upon the transaction being completed, Tabadul will become a wholly owned subsidiary of Elm, preserving its brand and identity. Tabadul’s current executive management will continue to lead its operations, and will report to its existing board of directors, with representation from Elm.

The transaction is likely to result in significant synergies while unlocking potential growth opportunities and expediting the achievement of the overall strategic objectives of the both companies.

Besides, Elm and Tabadul will have an opportunity to leverage complementary strengths, enhance competitiveness and expertise to create a one-stop-shop that will cater to the entire logistics value chain in the Kingdom.

Commenting on the transaction, the Public Investment Fund said: “This acquisition will contribute to the realization of Vision 2030 by creating a logistics national champion and benefit the KSA economy through integrating the logistics value chain.

“It is also in line with PIF’s mandate of supporting digital transformation in key sectors in accordance with PIF’s program in this regard. As an active investor, PIF is committed towards the growth of its portfolio companies throughout their business lifecycle while seeking opportunities for synergies and collaboration between them.”

Dr. Abdulrahman Aljadhai, chief executive officer of Elm, regarded the deal to be an important milestone for Elm as it continues to expand its product offerings and digital custom solutions in the transportation and finance sectors.

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 and offering significant value to its partners and the market alike.

Dr. Abdulrahman also stated that it is an opportunity to develop national logistics services that meet the current market requirements and the need of the beneficiaries.

Eng. Abdulaziz Alshamsi, chief executive officer of Tabadul, said that he is confident that this transaction will enable Tabadul to expedite its new service offerings and solutions. He noted that this transaction would be a remarkable development that will support the business growth in Tabadul during the coming years.

Moreover, it will serve the Customs, Ports, and Aviation sectors and contribute to the advancement of logistical domains. Combining Tabadul’s forces with Elm’s will allow Tabadul to leverage product capabilities and create a comprehensive logistics platform that are core to Tabadul’s growth strategy.

Al Elm Information Security Company (Elm) is a wholly owned company of the Public Investment Fund (PIF) of Saudi Arabia, and represents one of PIF’s investments in the communications and information technology sector. — SPA