The companies signed a share sale and purchase agreement, which is anticipated to conclude on receipt of regulatory approvals. Credit: Elm.

Saudi Arabian digital security company Elm has agreed to acquire Thiqah Business Services Company from the country’s Public Investment Fund (PIF) for $907m (SR3.4bn).

Thiqah, a provider of smart technology solutions for business services, is fully owned by the PIF.

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The companies signed a share sale and purchase agreement in this regard, which is anticipated to conclude upon receipt of regulatory approvals and satisfaction with certain conditions.

Elm CEO Mohammad Abdulaziz Alomair said: “This is an important transaction for Elm, as it enhances integration, rationalises 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. It will also contribute to facilitating innovative operations and capabilities to develop products in the business field with cost advantages while achieving economies of scale.”​

The deal is expected to help strengthen the local information and communication technologies (ICT) ecosystem and aligns with PIF’s strategy to support Vision 2030.

This includes leveraging digital transformation to create high-skill jobs and contribute to the growth of the Saudi economy, the company said in a statement.

In addition, the deal aims to support the development of the ICT sector by promoting innovation, localising technologies and expertise, and bolstering Elm’s expertise in the sector at the national level.

It also seeks to expand the value chain by offering a variety of ICT products, services, and devices.

The ICT sector is stated to be one of PIF’s strategic priority investment areas, serving as a critical enabler for other key sectors such as entertainment, financial services, healthcare, transportation and logistics, and utilities and renewable energy.

PIF MENA Investments Technology and Media head Shahd Attar said: “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.”

In November 2024, Saudi Arabia announced plans for an AI initiative, potentially backed by up to $100bn (SR376bn), to establish a technological hub within the country.