Saudi Tadawul unit buys capital markets data group DirectFN

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Saudi Tadawul Group Holding Company (STG) said its key subsidiary, Tadawul Advanced Solutions Company (Wamid), has completed the acquisition of DirectFN, an award-winning capital markets data solutions provider, in a deal worth SR134 million ($36 million).

This 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.

According to STG, it will enable both Wamid and the group to expand regionally and globally, leveraging DirectFN’s geographical reach across 20 countries.

The DirectFN deal 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.

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.

STG revealed that the transaction will be funded through internal resources which will be covered by a sharia compliant bank facility.

On the deal, Wamid CEO Mohammed Al Nory 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."

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 Programme.

"The transaction will help us accelerate innovation in the existing STG business, pursue exciting new business opportunities and identify new revenue sources," he noted.

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, he added.