DUBAI (Reuters) – Western Union (NYSE:), the world’s largest cash switch agency, has acquired a 15% stake within the digital fee unit of Saudi Arabia’s STC Group for $200 million.
The acquisition of stc pay, which values the corporate at 5 billion riyals ($1.3 billion), will finance its capital and assist long-term growth plans, Saudi Arabia’s largest telecoms operator stated in an announcement on Saturday.
STC Group chairman Mohammed bin Khalid Abdullah Al Faisal stated the funding mirrored the corporate’s place as a “digital enabler”. He stated the deal created the primary “Saudi unicorn and the primary fintech unicorn within the Center East”.
Unicorns are usually outlined as non-public corporations valued at $1 billion or extra.
Sources advised Reuters final month that STC had employed banks to rearrange a possible preliminary sale of shares in its product and providers growth arm, Options by STC.
Lowering dependence on money is a part of Saudi authorities efforts to modernise the economic system of the world’s largest oil exporter.
STC stated its stc pay unit is the primary licensed fintech firm by the Saudi Arabian Financial Authority, the Saudi central financial institution, and has greater than 4.5 million customers.
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