Elm signs a share purchase agreement to acquire Tabadul’s entire shares from the Public Investment Fund in a step to position Saudi Arabia as a global logistics hub


Elm signs a share purchase agreement to acquire Tabadul’s entire shares from the Public Investment Fund in a step to position Saudi Arabia as a global logistics hub 


Al Elm Information Security Company (Elm) today, 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 transaction is subject to securing required regulatory approvals.

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 national logistic platform that respond to logistic market demands 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.”.


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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.

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About Elm

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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. Elm’s 1,500+ strong resource base across 13 sectors provides custom solutions and products to a diverse set of clients in the Kingdom, touching the day-to-day life of millions of Saudis and residents alike.

About Tabadul

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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. Tabadul built and operated Fasah platform, the Saudi National Single Window Logistic Platform, which provide Saudi Customs Clearance Services and Mawani Sea Port Community Services including managing the trucks traffic for seaports and border points. Moreover, Tabadul has made its breakthrough in Fintech sector with couple of electronic financial products: the payment gateway solution Fasah Pay and the electronic Letter of Guaranty solution Wthaq.



About PIF

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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. PIF is building a world-class, diversified portfolio through investments in attractive, long-term opportunities across sectors and asset classes at both the domestic and international level. Working alongside global strategic partners and renowned investment managers, PIF acts as the Kingdom of Saudi Arabia’s main investment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for the Kingdom of Saudi Arabia, in line with Vision 2030.



Q&As



What aspects of cooperation will be available to both Elm and Tabadul? 

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

What does the acquisition mean for the two companies? 
Upon closing, Tabadul will become wholly owned by Elm, preserving its brand and identity. Tabadul’s current executive management will continue to lead its operations. 

Will the board of Tabadul company change? 
The board and the committees formed by it will continue to operate their business till finalizing the acquisition procedures. Upon closing, Elm can make any necessary adjustments with the General Assembly of Tabadul.  

Why did Elm acquire Tabadul? 
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.  
 
Does the transaction mean merger between Elm and Tabadul? 
No. of course not. Under this agreement, Tabadul will continue to operate as an independent company, under its trademark whose ownership has been transferred to Elm.   

 

How will the Public Investment Fund benefit from such acquisition? 
As a %100 shareholder in Elm, PIF is committed towards facilitating the growth of its portfolio companies throughout their business lifecycles, thereby fostering them to become “National Champions”. The transaction would act as a catalyst towards building a tech-enabled logistics champion, further supporting Kingdom’s push to become a global logistics hub, in-line with PIF’s mandate to diversify the Saudi economy under Vision 2030. 

Has Elm built the acquisition decision based on Tabadul’s generated revenues?  
Elm, as a leader in the digital field, laid a close and perceptive insight on Tabadul along with its management, key employees, culture and customer relationships, not only on financial numbers, but on the intangible assets that drive the company's success plan, and how well it is able to achieve a better view of the future. Elm perceptive insight on investment opportunities focuses on creating a strategic harmony that adds value not only to Elm, but the other party as well. The financial situation and the feasibility of the investment follows. 

What is the significance of Tabadul? 
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. Tabadul built and operated Fasah platform, the Saudi National Single Window Logistic Platform, which provide Saudi Customs Clearance Services and Mawani Sea Port Community Services including managing the trucks traffic for seaports and border points. Moreover, Tabadul has made its breakthrough in Fintech sector with couple of electronic financial products: the payment gateway solution Fasah Pay and the electronic Letter of Guaranty solution Wthaq. 


For more information, please feel free to contact the Elm’s Media Center at: media@elm.sa