Saudi Arabia’s Al Elm Information Security Company (Elm) has signed an agreement to acquire the entire shares of the Saudi Company for Exchanging Digital Information (Tabadul) from the Public Investment Fund (PIF).
Upon closing of the transaction, 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.
Under the agreement, Tabadul will continue to operate as an independent company, under its trademark whose ownership has been transferred to Elm.
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.”
This acquisition will add to the value of the Public Investment Fund by providing an integrated entity that focuses on the digital sector. Also, it creates advanced national logistical services that are aligned with the current market requirements and the need of beneficiaries, as well as facilitating innovation by taking advantage of Elm expertise to develop Tabadul products in the logistical field. Moreover, it will reduce costs while creating satisfactory economic revenues.
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 Aljadhai also stated that it is an opportunity to develop national logistics services that meet the current market requirements and the need of the beneficiaries.
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.
Elm is one of biggest digital companies in the region, aiming to enhance its global reach in the near future. Established in 1986, Elm provides various technical solutions, e-products, consulting services, digital outsourcing, and training solutions to government and private businesses.
Tabadul is a pioneer in providing innovative digital integration solutions to the logistics sector, enabling the exchange of information, goods and services across government and private businesses in the Kingdom of Saudi Arabia.
The Public Investment Fund is one of the largest and most impactful sovereign wealth funds in the world, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia. – TradeArabia News Service