DUBAI - Saudi information security company Elm is to acquire digital services company Tabadul from Saudi Arabia's sovereign wealth fund, Elm said in a statement on Sunday.
The Public Investment Fund (PIF) also owns Elm and was considering an initial public offering of the information security company, sources told Reuters in May.
The value of the deal, under which Elm will acquire 100% of Tabadul's shares, was not disclosed. The transaction is subject to securing regulatory approvals.
Tabadul's executive management will continue to lead it, the statement said, and its board will remain in place until the acquisition is finalised.
Tabadul, also known as Saudi Company for Exchanging Digital Information, provides digital solutions for the logistics sector.
"The combination of Elm and Tabadul will create a one-stop-shop that will cater to the entire logistics value chain," the statement cited Elm CEO Abdulrahman Aljadhai as saying.
PIF said 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.
"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," PIF said.
Tabadul CEO Abdulaziz Alshamsi said in the statement that the deal would enable Tabadul to expedite its new service offerings and that it will serve the customs, ports, and aviation sectors.
(Reporting by Nafisa Eltahir. Writing by Yousef Saba. Editing by Jane Merriman)