SAIC signs MoU to acquire Dar Al Balad

Logo of Saudi Advanced Industries Co.(SAIC)

Saudi Advanced Industries Co. (SAIC) signed, on June 3, a non-binding memorandum of understanding (MoU) to acquire all of Dar Al Balad Business Solutions Co. shares, including its rights and obligations, upon reaching a final agreement.

According to a statement to Tadawul, the acquisition comes within the framework of SAIC’s strategy for continued growth and sustainability.

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The MoU aims to define the framework of the initial mutual obligations and rights between the two parties, the statement noted, adding that the agreement is conditional on the results of the financial and legal due diligence and negotiations to reach the final evaluation.

The MoU includes a number of generally accepted provisions that regulate the confidentiality of information, exclusivity, and restrictions on some essential work.

The statement highlighted that the implementation of the potential deal is subject to the agreement of the two parties on a final, binding agreement that specifies the terms and conditions of the deal.

The six-month MoU is effective as of the date of signing, the statement noted, adding that it is renewable upon a written addendum between the two parties.

The MoU concludes with the end of its term or on signing of a binding agreement between the two parties, the statement pointed out, indicating that SAIC will announce any fundamental developments regarding the deal in due course.

Dar Al Balad is one of the leading companies in the field of information technology. Founded in 2001, it is a subsidiary of Dar Al Balad Holding Co., and has a number of local branches. The company has worked to build and develop its capabilities to be among the main companies that provide services to banks, insurance sector, financial brokerage companies, semi-government bodies and companies, and private sector companies. Dar Al Balad offers a diverse and unique set of skills, expertise, services and solutions at the local and regional levels.

During the last five years, the company achieved remarkable growth, financial solvency and high cash flows from operational activities, with a net profit of more than SAR 30 million in 2023.

The acquisition aims to support and ensure continued growth, expand the scope of services, and qualify it for listing on the main stock market within the next two years. The company is classified as a large company that implements projects worth up to SAR 200 million, and it holds a quality certificate and a local content certificate.