Elm, a Saudi Arabia-based information security company, will take over Tabadul, a digital services company, media reports said. Tabadul is currently operating under Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF) which also owns Elm.
PIF told the media, “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. The deal would contribute to Saudi Arabia’s Vision 2030, which seeks to diversify the economy of the world’s biggest oil producer away from hydrocarbons”.
It is reported that PIF was considering an initial public offering of Elm from a long time. As a part of the deal, Elm will acquire 100 percent shares of the digital services company. The transaction details are not disclosed by any of the companies. The current executive management and board members will continue to lead Tabadul until the acquisition is completed.
According to Elm, the acquisition will boost Saudi Arabia’s logistics value chain by creating a one-stop-shop. Along with it, the deal expects Tabadul to launch its new service offerings for areas such as the aviation sector, ports and customs.
Furthermore, Tabadul is widely recognised as a company for exchanging digital information, mostly caters the logistics sector by delivering digital solutions.
Despite the Covid-19 crisis, Elm has shown some bravery to acquire Tabadul as many companies in the world are scrambling for profits in a pandemic situation like this. The acquisition will foster Elm in terms of sustainability and growth.