Tibbiyah signs agreement with Unilabs Diagnostics to set up joint venture

Logo of Arabian International Healthcare Holding Co. (Tibbiyah)

Arabian International Healthcare Holding Co. (Tibbiyah) announced today, July 26, signing a definitive joint venture (JV) agreement to cooperate with Unilabs Diagnostics AB to set up and operate Saudi European Diagnostics Co. (SEDC), a limited liability company, in the Kingdom, according to a bourse statement.

Unilabs will own 51% of the JV, while Tibbiyah will hold the remaining 49% stake.

The JV will provide diagnostic imaging services to hospitals, medical centers and clinics. It will also invest, operate, manage and maintain departments or divisions of hospitals, medical centers and clinics specialized in diagnostic imaging services in the public and private sectors.

The establishment of SEDC represents Tibbiyah’s continuous investment in the healthcare services vertical, which is in line with its strategy to become a diversified healthcare holding company.

Eventually, with a compelling value creation proposition for Tibbiyah and its shareholders, SEDC is expected to be value accretive, with a clear plan to grow the business generally and in diagnostic imaging services and radiology services.

Unilabs is one of Europe’s leading diagnostics companies, offering a complete range of laboratory, pathology, and imaging services to patients across four continents. It is also a digital champion covering the full diagnostic spectrum through more than 14,200 persons who save lives of patients every day.

Unilabs invests heavily in technology, equipment, and people – using digital technologies in its state-of-the-art laboratories and imaging institutes to improve the lives of nearly 100 million people every year.

The agreement is subject to some pre-closing conditions, including, without limitation, obtaining the approval of the General Authority for Competition, as well as other conditions of a regulatory and commercial nature.

Tibbiyah’s CEO Alaa Ameen said: “The agreement will strengthen Tibbiyah’s strong position in the Saudi healthcare market and reinforce its status as a leading diversified healthcare company.

“The establishment of SEDC constitutes our entry with our partner Unilabs Diagnostics in Saudi Arabia for the investment, operation, management and maintenance of diagnostic imaging centers for public and private customers,” he noted.

He added that this partnership combines the expertise and experience of two high-quality Healthcare providers, creating new opportunities to further develop and expand our healthcare services in the Kingdom.

The deal will allow implementing Tibbiyah’s strategy to enter into attractive healthcare market segments that have strong fundamentals conducive to growth and as one of the main players in the local healthcare sector, the CEO concluded.