UAE telco e& buys Turkish tech company for $60m

Alamy via Reuters

A wholly owned subsidiary of Abu Dhabi-listed e& – more commonly known as Etisalat – has acquired GlassHouse, a Turkey-based cloud solutions provider, for $60 million.

The UAE telco’s subsidiary, e& enterprise, had signed an agreement with Mediterra Capital and individual shareholders in June.

GlassHouse is an Istanbul-headquartered IT infrastructure services provider which serves 2,000 enterprises and has offices in Turkey, Qatar and South Africa, generating more than 80 percent of its revenue in US dollars.

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The acquisition will provide more opportunities across e&’s operating markets, including the UAE, Saudi Arabia, and Turkey, the company said in a statement.

The transaction will be financed through debt.

The financials of GlassHouse will be consolidated into e&’s financials starting September 1, 2024, though the impact on overall figures will be insignificant.

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The Emirati telco told analysts earlier this year that it wants its tech-related divisions to generate 40 percent of its revenue by 2030.

This figure is currently at around 7 percent, said Neetika Gupta, head of research at Muscat’s Ubhar Capital.