Western Union, one of the world’s largest transfer firm, has acquired a 15% stake in the digital payment unit of Saudi Arabia’s STC Group for $200 million.
The Saudi Telecom Company on Saturday said that the acquisition of STC pay, which values the company at 5 billion riyals ($1.3 billion), will finance its capital and support long-term expansion plans.
STC Group chairman Mohammed bin Khalid Abdullah Al Faisal said the investment reflected the company’s position as a “digital enabler”. He said the deal created the first “Saudi unicorn and the first fintech unicorn in the Middle East”.
Unicorns are generally defined as private companies valued at $1 billion or more.
Reuters reported last month that STC had hired banks to arrange a potential initial sale of shares in its product and services development arm, Solutions by STC.
The Saudi government is working on reducing dependence on cash as part of efforts to modernise the economy of the world’s largest oil exporter.
STC said its STC pay unit is the first licensed fintech company by the Saudi Arabian Monetary Authority, the Saudi central bank, and has more than 4.5 million users.
