Saudi Advanced Industries Company announces the signing of a (non-binding) memorandum of understanding to acquire up to 100% of the shares of Dar Al Balad Business Solutions Company.
- Date : 2024-06-04
| Element List | Explanation |
|---|---|
| Introduction | Saudi Advanced Industries Company (SAIC) announces the signing of a (non-binding) memorandum of understanding with Dar Al-Balad Business Solutions Company to acquire up to 100% of the company’s shares, including its rights and obligations, upon reaching a final agreement between the two parties. The acquisition is within the framework of the Saudi Advanced Industries Company’s strategy for continued growth and sustainability that it targets. |
| Memorandum Signing Date | 2024-06-03 Corresponding to 1445-11-26 |
| Counterparty | Dar Al Balad Business Solutions Company |
| Memorandum Subject | A (non-binding) memorandum of understanding concluded between Saudi Industries Company (SAIC) and Dar Al-Balad Business Solutions Company for the purpose of the (Advanced) company acquiring up to 100% of the shares of Dar Al-Balad Business Solutions Company. This memorandum aims to define the framework of understanding about primary mutual obligations and rights. Between the two parties, the agreement is conditional on the results of the financial and legal due diligence work and negotiations to reach the final evaluation.
The memorandum of understanding also includes a number of common items that regulate the confidentiality of information, exclusivity, and restrictions on some essential work. It should be noted that the implementation of the potential deal is subject to the two companies agreeing on a final, binding agreement that specifies the terms and conditions of the deal. |
| Memorandum Duration | The memorandum will take effect from the date of its signing and will remain in force for a period of six months. It will not be renewed except by a written addendum between the two parties, and it will expire at the end of its term or with the signing of a binding agreement between the two parties. |
| Related Parties | NA |
| Financial Impact | NA |
| Additional Information | • Dar Al-Balad Business Solutions Company is considered one of the leading companies in the field of information technology. It was founded in 2001 and is a subsidiary of Dar Al-Balad Holding Company. It has a number of local branches. The company worked to build and develop its capabilities to be among the main companies that provide services to the banking sector and the banking sector. Insurance, financial brokerage companies, semi-governmental bodies and companies, and private sector companies. It offers a diverse and unique set of skills, experiences, services and solutions at the local and regional levels.
It should be noted that Dar Al-Balad Business Solutions Company has achieved growth in the volume and results of its business during the last five years and has financial solvency and high cash flows from operational activity. The company achieved net profits during the year 2023 in excess of 30 million riyals. The goal of acquiring the company is It is to support and ensure the continuity of growth, expand the scope of its services, and qualify it to be listed on the main stock market during the next two years, as it is classified under the heading of large companies and classified to implement projects worth up to 200 million riyals, and it holds a quality certificate and a local content certificate.
• Any material developments regarding the deal will be announced in due course. |