- Emirates Telecommunications Group Company (e&) is acquiring Turkish cloud services provider GlassHouse for $60 million.
- The acquisition is financed through debt and aims to expand e&’s presence in the Turkish IT services and cloud market.
- GlassHouse’s financials will be consolidated into e&’s accounts, enhancing e& enterprise’s digital capabilities and global footprint.
- GlassHouse services 2,000 businesses across multiple sectors, including banking, technology, and defence, with offices in Turkey, Qatar, and South Africa.
- The acquisition aligns with e&’s strategy to strengthen its position in the digital and IT services sector and diversify its portfolio in high-growth areas.
Emirates Telecommunications Group Company, also known as e&, is set to acquire the Turkish cloud services provider GlassHouse.
This move facilitated through e&’s wholly-owned subsidiary e& enterprise, involves the purchase of 100% of GlassHouse for an enterprise value of $60 million. The transaction will be executed on a cash-free, debt-free basis.
Financing and Purpose
The acquisition will be financed through debt, as outlined in a statement to the bourse. It marks e& enterprise’s strategic entry into the Turkish IT services and cloud market.
By integrating GlassHouse, e& aims to leverage its SAP capabilities not only within the UAE but also in the broader region, including Saudi Arabia.
Operational Impact
Following the completion of the transaction, GlassHouse’s financials will be consolidated into e&’s accounts.
The acquisition aligns with e&’s broader strategy to scale up e& enterprise, enhance its digital capabilities, and expand its global footprint.
About GlassHouse
GlassHouse is known for its expertise in data backup, business continuity, cloud management, and SAP infrastructure services.
The company has demonstrated impressive growth, recording double-digit increases in both revenue and EBITDA.
Remarkably, 80% of GlassHouse’s revenues are generated in US dollars. GlassHouse services 2,000 businesses across various sectors including banking, technology, telecommunications, public services, aerospace, and defence.
The company operates offices in Turkey, Qatar, and South Africa, reinforcing its presence in strategic markets.
Market Implications
This acquisition is significant for e& as it expands its service offerings and market reach. It reflects e&’s ambition to strengthen its position in the digital and IT services sector.
The move also signals e&’s commitment to diversifying its portfolio and enhancing its capabilities in high-growth areas such as cloud services and SAP infrastructure.
By acquiring GlassHouse, e& not only gains a foothold in the Turkish market but also positions itself as a stronger player in the regional IT services and cloud industry.
This strategic move is expected to provide substantial growth opportunities and reinforce e&’s vision of becoming a global digital leader.
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Last Updated on June 26, 2024 by Safiya K
