Saudi ACES Company Considers Selling Stake Amid Growing Demand for Digital Infrastructure

SadaNews - The Saudi company "Advanced Communications and Electronics Systems" (ACES) is considering selling a stake, according to sources familiar with the matter, in a deal that would allow buyers to capitalize on the growing demand for digital infrastructure services in the Kingdom.

The IT-focused company, known as "ACES", which is owned by its founders and investment firm "EW Partners", is working with "EFG Hermes" on the potential deal, according to sources who requested anonymity as the information is not available to the public.

Private equity firms and strategic investors have expressed interest, according to some insiders. Negotiations are still ongoing, and no final decision has been made regarding the deal.

A spokesperson for "EFG" declined to comment, while representatives of "ACES" and "EW Partners" did not respond to requests for comments.

Growing Momentum for Digital Infrastructure in Saudi Arabia

Founded in the 1990s, "ACES" employs about 4,000 staff and provides services to telecommunications operators, airports, subways, and stadiums across the Middle East and the Asia-Pacific region, according to its website. The company operates what is known as a "neutral host model", through which it shares digital networks with third-party service providers.

Digital transformation is one of the key pillars of Saudi Arabia's agenda to restructure its economy over the long term with the aim of reducing reliance on oil.

These efforts have attracted investors to the tech sector in the Kingdom, with "Bloomberg" revealing earlier this month that "Investcorp Holdings" is considering selling "Noor Net", a company specializing in IT.

Public markets are also benefiting from this momentum, as the shares of "Rasan Information Technology" and "United International Holdings" have outperformed the broader Saudi index since their listings last year. Additionally, several fintech companies are preparing for initial public offerings, including "Tamara", which specializes in buy now, pay later services, and "Imkan Finance" and "Al-Tamweel Al-Awwal", as revealed by "Bloomberg".