Abu Dhabu’s Mubadala Capital has agreed to acquire a controlling stake in Babel, a Madrid-based IT and digital transformation services provider.
The acquisition, which is subject to regulatory approval, further expands Mubadala’s presence in the business services sector, following its earlier purchase of Dutch safety-critical training company RelyOn Nutec this year.
The terms of the deal, subject to customary regulatory approvals, were not disclosed.
Babel’s executive team and founders will retain a minority stake.
Founded in 2003, Babel provides various solutions, including traditional IT services and technologies like AI, hyper-automation, cloud migration and cybersecurity.
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Antoun Ghanem, executive director and head of Mubadala Capital’s European private equity team, said Babel is well-positioned to capitalise on the growing demand for digital transformation, particularly in advanced and evolving technologies such as cloud-enabled solutions.
With Mubadala’s support, Babel aims to expand its service portfolio and position itself as a consolidator in the fragmented IT services market.
In August, the wholly owned alternative asset management subsidiary of Mubadala Investment Company participated in early-stage investments into Seattle cell therapy specialists Outpace Bio, New York’s Metsera and California’s Capstan Therapeutics, data from PitchBook shows.
Mubadala Capital launched in 2011 with a remit to invest primarily in private equity and public markets in North America and Europe. In 2017 the company became one of the first sovereign wealth funds to manage the money of third-party investors.