Capinnova pumps $20m into Kuwaiti IT firm
Manama, April 17, 2010
Capinnova Investment Bank, the Shari’a compliant investment banking arm of BBK, has announced a minority investment of $20 million in Kuwait-based Ebla Computer Consultancy.
Ebla is a leading GCC entity engaged in the provision of IT solutions and IT consultancy services in the Mena region. Established in 1993, the company currently has subsidiaries in Qatar, UAE, Saudi Arabia, and Egypt and branch offices in Syria, Jordan and Bahrain.
Ebla's strong customer base contributed to the company's high growth rates since inception, which made them adopt a prominent place on the regional level.
“As a fast-growing, profitable company in a growth industry, Ebla ideally fits Capinnova’s Private Equity investment profile,” said Jamal Hijres, chief executive officer at Capinnova Investment Bank.
“This is one of the largest technology investments in the GCC in this year, and Capinnova remains committed to providing unique combination of financial support, strategic guidance and a significant network of contacts through the Bank’s Board representation, enabling Ebla to continue on its growth trajectory.”
“The IT market in the Middle East showed positive growth rates despite the financial crisis the region has faced, thanks to the initiatives of both public and private sectors in terms of the tangible support, investment and expenditure on the IT infrastructure,” Hijres added.
Hilal Arnaoot, CEO of Ebla, said, 'With upcoming opportunities in the regional IT sector, Ebla plans to use the equity injection to grow both organically through geographic expansion and by offering its clients an assortment of additional product and services as well as through strategic acquisitions.'
'We are confident that the combined teams of Ebla and Capinnova will significantly enhance the value of the company thus generating superior returns for the stakeholders,' he added. GulfMerger acted as the sell-side adviser to Ebla.
Capinnova Private Equity focuses on opportunities of investing in and partnering with dynamic medium-sized companies to help them achieve robust growth and implement best practices in management and corporate governance to enhance shareholder value.-TradeArabia News Service