- The acquisition helps brokers, asset managers, Fintech and other financial institutions introduce innovative products and services in the Saudi capital market
- The transaction diversifies sources of recurring revenue for the Saudi Tadawul Group
Riyadh: The Saudi Tadawul Group Holding Company (“STG”) announced the latest developments regarding the completion of the acquisition of its subsidiary, Tadawul Advanced Solutions Company (“Wamid”), of DirectFN, an award-winning capital markets data solutions provider. The acquisition is another milestone for Wamid as it seeks to acquire capabilities that will accelerate its expansion, introduce innovative products and services to capital market stakeholders and ensure revenue diversification of the Saudi Tadawul Group.
The transaction will enable Wamid and the Saudi Tadawul Group to expand regionally and globally, leveraging DirectFN’s geographical reach across 20 countries. Through DirectFN, Wamid will gain access to two development centers that can be leveraged for their technical expertise in emergent technologies, along with 500 employees, 300 software developers and new clients. Wamid’s ability to offer innovative emerging technologies to the Saudi capital market will be key in advancing the Kingdom’s role as a leading global digital economy, in line with Vision 2030’s Financial Sector Development Program.
The value of the transaction is SAR 133,951,500 and is subject to post-completion adjustments in accordance with Agreement. The Transaction will be funded by internal resources of Saudi Tadawul Group Holding Company, which will be covered by a Sharia compliant bank facility.
Speaking on the transaction, Mohammed Al Nory, CEO of Wamid, said, “The acquisition of DirectFN is a key milestone in our journey to providing market participants with value-add services that unlock the power of technology and data in capital markets. The transaction will help us accelerate innovation in the existing STG business, pursue exciting new business opportunities and identify new revenue sources.”
DirectFN offers a range of application software platforms that serve brokerage houses, banks, clearing members, asset managers and Fintech companies as well as institutional and retail investors. The acquisition of DirectFN is the third key milestone for Wamid, following the launch of its co-location service and Liqaa, diversifying sources of recurring revenue for the Group and increase its revenues. While DirectFN will operate independently, for now, its financials will be consolidated with Wamid’s in the near future.
Founded in September 2020, Wamid is the innovation arm of the Saudi Tadawul Group, supporting the development of the Saudi capital market in line with Vision 2030’s Financial Sector Development Program. Wamid is responsible for providing services that can help unlock the power of data and technology in the Saudi capital market and beyond. With a mandate to provide services focusing on data, artificial intelligence (AI) and market infrastructure, Wamid is at the forefront of leveraging emerging technologies that can help stakeholders address real-world challenges.