Saudi AZM for Communication and Information Technology Co has signed a non-binding MoU with AZM FinTech’s shareholders to fully acquire the latter’s shares.
The firm has appointed Shariah compliant Alinma Investment as the financial advisor for the proposed deal, adding that it will be conducting full due diligence, valuation, final negotiations, signing the relevant agreements and applying for approvals from the relevant authorities during the duration of the MoU which will be effective for 18 months.
Saudi AZM is a consulting and IT firm whose services include developing and operating fintech applications and platforms. The company counts various Saudi government entities and ministries as its clients as well as Islamic banks such as Al Rajhi Bank, Riyad Bank, Alinma Bank and Bank AlJazira.
Last September, it won a SAR16.51 million (US$4.26 million) contract from the Ministry of Finance, just two months after being awarded an SAR8.13 million (US$2.16 million) operation and maintenance project for the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts. In December, it signed a SAR9.54 million (US$2.54 million) deal with the Saudi General Authority for Awqaf.
The company is no stranger to Islamic finance: earlier in February it renewed a SAR35 million (US$9.32 million) financing facility with Al Rajhi Bank to fund its working capital.
AZM FinTech, on the other hand, is licensed by the Saudi Central Bank to conduct digital payments. Its products include Edaad, a billing and payment platform as well as several crowdfunding platforms.