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Emirates Telecommunications Group Company (e&), the UAE telecoms group formerly known as Etisalat, is acquiring Turkey-based cloud services provider GlassHouse through its wholly owned subsidiary e& enterprise.
The unit has signed a binding agreement with Mediterra Capital and the individual selling shareholder to take over 100% of the company for an enterprise value of $60 million on a cash free, debt free basis.
The new investment will mark e& enterprise’s entry into the Turkish IT services and cloud market. It will also enable the subsidiary to leverage GlassHouse’s SAP capabilities not only in the UAE but also in Saudi Arabia.
The deal will be financed through debt and is not associated to related parties. Once the transaction is completed, GlassHouse’s financials will be consolidated into e&’s.
“This acquisition aligns with e&’s strategic ambition to scale e& enterprise, strengthen its digital capabilities and expand its global footprint,” the statement said.
Specialising in data backup and business continuity, as well as managing cloud and SAP infrastructure services, Glasshouse has posted double-digit growth in revenues and EBITDA and generates the bulk (80%) of its revenues in US dollars.
It serves 2,000 businesses in various sectors, including banking, technology, telecommunications, public services, aerospace and defence.
It operates offices in Turkey, Qatar and South Africa.
(Writing by Cleofe Maceda; editing by SebanScaria)
