Saudi Arabian artificial intelligence company Elm has signed on the dotted line to pick up digital services provider Tabadul.
Under the terms of the transaction, the company will buy the Riyadh-headquartered business from the Public Investment Fund.
Multiple sources picked up on the news, citing a statement from Elm.
No financial details have been disclosed.
Completion remains subject to the green light being received from regulatory authorities, but it is not clear when closing can be expected to occur.
Following the transaction’s conclusion, Tabadul will continue to be led by its executive management team, who will report to the board, and will trade independently under its current name.
Elm chief executive Dr Abdulrahman Aljadhai said the enlarged business will be able to cater to the whole logistics value chain.
The parties also believe the move will unlock potential opportunities for growth and is in line with their strategic objectives.
Aljadhai’s counterpart at Tabadul, said he believes the acquisition will enable the firm to bring new service offerings to market more quickly and support its business growth in the future.
The target’s technology is designed to improve efficiency, increase transparency and enhance operational performance.
Its offering includes logistics and financial products, with the Fasah platform and Fasah-Pay, which allows users to easily digitise bills and payments, among its portfolio.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 30 deals targeting Saudi Arabian companies announced worldwide since the beginning of 2020.
The most valuable of these saw Mobile Telecommunications Company Saudi Arabia announce plans to raise USD 1.20 billion via a rights issue back in February.
No other deal targeting the country surpassed USD 1.00 billion; the second-placed transaction involved BUPA upping its stake in BUPA Arabia for Cooperative Insurance Company from 39.3 per cent 43.3 per cent for USD 146.18 million.
© Zephus Ltd