Logo of Tadawul Advanced Solutions Co. (Wamid)
Saudi Tadawul Group Holding Co. (Tadawul Group) announced that its wholly-owned subsidiary Tadawul Advanced Solutions Co. (Wamid) signed today, Nov. 24, a sale and purchase agreement (SPA) with National Two Ventures LLC (sole proprietorship) that holds 99% of Direct Financial Network Co. (DirectFN).
Under the agreement, Wamid will acquire a 51% stake in DirectFN for SAR 134 million, according to a statement to Tadawul.
National Two Ventures has been recently established for the purpose of the transaction by one of the major shareholders in National Technology Group (NTG) to hold shares in the target company.
The transaction value is subject to the adjustments provided under the agreement. The change in the previously-announced deal value was attributed to the due diligence.
Completion will be subject to certain conditions, including without limitation, obtaining the required regulatory approvals, including the General Authority of Competition (GAC), as well as the restructuring of the target company.
Wamid is considering different available funding options, which will be announced in due course, once agreed.
The deal is an integral part of Wamid's growth strategy. It will create an opportunity to build new capabilities, elevate innovation in the regional capital markets and diversify revenue.
The financial impact will be determined based on the performance of the target firm after the acquisition, which is expected to have a positive impact on the group over time.
Tadawul Group will announce any material developments in due course, in accordance with the relevant regulatory requirements.
In August, Wamid entered into a non-binding preliminary agreement with Direct FN and its indirect majority shareholder, NTG, to buy 51% in Direct FN from direct and indirect shareholders, at an initial value of SAR 140.3 million (subject to adjustment), according to data available with Argaam.
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