Saudi technology companies are continuing to expand their presence in the financial technology (fintech) sector through acquisition deals, driven by the rapid growth of the local market. In line with this trend, Azzm Saudi Company for Communications and Information Technology has begun studying a deal to fully acquire Azzm Fintech Company. This move aims to strengthen Azzm's operations in digital services. Azzm Saudi Company for Communications and Information Technology announced it has signed a non-binding Memorandum of Understanding (MOU) with Azzm Fintech Company. This MOU is to explore acquiring 100% of Azzm Fintech's shares. The deal aims to expand Azzm's presence in the fintech sector and support its growth strategy in the Kingdom's digital markets. The company clarified that the MOU, signed on August 1st, serves as an initial framework for negotiations between the two parties and does not mean the acquisition process is complete. The deal remains subject to the results of due diligence, the completion of negotiations, and obtaining the necessary regulatory and contractual approvals. Under the MOU, Azzm will begin conducting legal, financial, tax, and Zakat due diligence to evaluate the target company's situation before making a final decision on the acquisition. This is a crucial step to determine the feasibility and terms of the deal. The company confirmed that the deal's value, payment mechanism, and financial consideration structure will be determined after the due diligence is completed and negotiations are finalized. These details will then be included in binding agreements if both parties reach a final agreement. The MOU also regulates the mechanism for information exchange between the two parties, with a commitment to data confidentiality during the negotiation period. Azzm Fintech Company, in turn, is committed to providing the necessary documents and data to complete the due diligence and evaluation processes. The company noted that the MOU is valid for 12 months from its signing date, giving both parties sufficient time to complete studies and negotiations before making a final decision. Azzm revealed that there are related parties involved in the deal. These include Majid Saad Al-Osaimi, Chairman of Azzm's Board of Directors and a major shareholder, who also chairs the Board of Directors of Azzm Fintech Company. Other related parties are Ali Mohammed Al-Bala, Azzm's Board Member and CEO, who is also the Managing Director of Azzm Fintech Company, and Firas Mahmoud Al-Mousli, CEO of Azzm Fintech Company and one of its shareholders. The company affirmed that there is no current financial impact as a result of signing the MOU. It also noted that it would disclose any material developments related to the deal as soon as they occur, in accordance with applicable laws and regulations. It added that Alistithmar Capital has been appointed as the financial advisor for the proposed deal, to handle the financial aspects related to the potential acquisition process.
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