Saudi Arabia Deals: Investcorp Explores Sale of IT Firm NourNet - Bloomberg
Alternative asset manager Investcorp Holdings is exploring the sale of an information technology firm in Saudi Arabia amid growing investor appetite for such assets in the kingdom, according to people familiar with the matter.
The firm is working with HSBC Holdings Plc on a potential sale of NourNet, the people said, asking not to be named because the information is private. Deliberations are ongoing, and no final decision has been made, they said.
Representatives for Investcorp and HSBC declined to comment. NourNet did not respond to requests for comment.
NourNet, one of Saudi Arabia’s largest providers of cloud computing, cybersecurity, data center management and other IT services, was founded in 1998 and serves more than 1,500 clients, according to its website. Bahrain-based Investcorp acquired a majority stake in the firm in 2022.
The potential sale of NourNet adds to a growing pipeline of transactions in Saudi Arabia, as private companies in high-growth sectors seek new investors, despite the geopolitical tensions of recent months. A pharmaceutical wholesaler and a fire safety and equipment supplier have also recently been put up for sale, Bloomberg News has reported.
An increasing number of international private equity firms now have a presence in the Gulf and are actively scouting for deals. Saudi Arabia is emerging as a top destination for buyouts, with data provider Magnitt estimating the kingdom accounts for nearly half of all transactions in the region.
Investor interest in the kingdom’s tech sector has extended to public markets as well. Rasan Information Technology Co. and United International Holding Co. have outperformed the broader Saudi market since their initial public offerings last year. Buy-now-pay-later firm Tabby, Emkan Finance Co. and Tamweel Al Oula Co. are among the fintechs preparing for public listings, Bloomberg News has reported.
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