- GlassHouse sold to e& for $60m
- Serves 2,000 businesses
- Most revenue is in US dollars
The UAE telecom operator e&, formerly Emirates Telecommunications Group company and Etisalat, has acquired the Turkish cloud services provider GlassHouse through its wholly owned subsidiary e& enterprise.
A binding agreement has been signed between e& enterprise and Mediterra Capital, a private equity firm that provides investments in Turkey, to take over 100 percent of GlassHouse for $60 million.
The UAE company will not take on any of the Turkish company’s debt or be entitled to any of its excess cash.
The new investment by e& is its first foray into the Turkish cloud market, after successful expansions into Saudi Arabia and Egypt in 2019 and 2023.
The deal will be financed through debt and is not associated with related parties, the company said in a statement.
Upon completion, the financials of GlassHouse will be consolidated into those of e&.
The acquisition will also allow e& to use the cloud provider’s capabilities in both the UAE and Saudi Arabia.
“This acquisition aligns with e&’s strategic ambition to scale e& enterprise, strengthen its digital capabilities, and expand its global footprint,” the statement said.
Glasshouse specialises in data backup and business continuity. It has experienced double-digit revenue growth and generates more than 80 percent of its revenues in US dollars.
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It has offices in Turkey, Qatar and South Africa and serves 2,000 businesses in several sectors, including top banks in Turkey.
Last month, e& ruled out buying out the Dutch telecom operator United Group, which operates in Serbia, Croatia, Slovenia, Bosnia & Herzegovina, Montenegro, Bulgaria and Greece.
The UAE telco also owns a 14.6 percent stake in the UK’s Vodafone.
Its consolidated net profit rose to AED2.3 billion ($630 million) in 2023, up 7 percent year on year.