Saudi payments company PayTabs Global plans to acquire SeaPay from listed technology firm Arab Sea Information Systems for SR35mn ($9mn), in another example of a Saudi technology business changing hands.
The proposed deal comes as Saudi Arabia's growing fintech sector creates opportunities for investors and companies looking to buy existing businesses rather than build new ones.
For PayTabs, the Saudi startup offering PayPal-like payment services, the acquisition could bring an established payments business, including its technology and operations. The company has not detailed its plans for SeaPay.
For Arab Sea, the sale could provide much-needed cash.
Arab Sea had just SR2.4mn in cash at the end of June. The proposed SR35mn sale price is nearly 15 times its cash balance.
The company also had SR33mn more in short-term liabilities than short-term assets, meaning it faced more bills due within a year than assets available to cover them.
