Etihad Atheeb signs MoU to acquire 51% of EJAD TECH for SAR 86.7 mln

Etihad Atheeb Company (GO) announced on Sunday the signing of a binding memorandum of understanding (MoU) to acquire a 51% stake in Ijad Al-Taqnia Information Technology Company (EJAD TECH) for SAR 86.7 million.

In a statement on Tadawul, Etihad Atheeb highlighted that the acquisition is expected to have a positive financial impact, contributing to increased revenues and profits. The company will provide further details upon completion of regulatory approvals and finalization of the deal.

The acquisition is part of Etihad Atheeb’s strategy to expand its business base through acquisitions and enter new sectors, in line with the company’s vision and goals. Mekyal Financial Technologies Company has been appointed as Etihad Atheeb’s financial advisor, while ValuHub Company will advise EJAD TECH.

The transaction is subject to several conditions, including the founder’s continued involvement for at least five years, a non-compete agreement for the founder and relatives, and achieving specific financial targets.

The deal is expected to be finalized in Q4 2024, pending approvals from Etihad Atheeb’s Extraordinary General Assembly, the Capital Market Authority, and the General Authority for Competition. No related parties are involved.