Abu Dhabi’s IHC increases tech deals by 100% over last year, aims to launch tech holding arm

International Holding Company (IHC) is focused on scaling up its information technology businesses, as part of its long-term strategy to grow its capacity in the tech industry. In line with this strategy, IHC has increased its technology deals by 100 per cent compared to last year, crossing Dhs1bn in the first 10 months.

The acquisitions included a 55 per cent stake in cyber security service provider CyberGate, an increase in Esyasoft ownership from 20 per cent to 42 per cent, 54 per cent in Emircom Middle East, the leading information and communications technology (ICT) provider, and 15 per cent in Bayanat, an AI-powered predictive geospatial intelligence technology company, which is planning to list 22.22 per cent of its shares in Abu Dhabi via IPO this month.

Read: Abu Dhabi-based IHC acquires majority stake in Emircom for Dhs250m to expand digital portfolio

“We are rapidly scaling our technology businesses portfolio, already raising short and long-term acquisition targets with a clear path to achieve further profitability in the next 12 months,” said Syed Basar Shueb, IHC’s CEO.

 Technology deals continue to drive global transactions, as evidenced by the growing number and volume of technology, media, and telecommunications (TMT) mergers and acquisitions (M&A) in recent years.

IHC’s planned tech holding company will not only focus on acquiring a majority stake in large-sized tech companies, but also small and medium tech businesses, as it will hold diversified tech verticals under its umbrella, aiming to become the largest tech holding company in the Middle East and Africa region.

IHC  is also looking to intensify its engagement and investment in the tech space, both regionally and globally, as the technology sector dominated mergers and acquisitions in 2021, setting records in deal value and volume. Technology mergers and acquisitions in 2021 increased by 71 per cent from 2020 levels, with dealmaking totaling $1.1tn and accounting for 20 per  cent of all global merger and acquisition deal value.  

 “We are certain there is potential for further growth in the tech sector, locally and regionally, as our market remains stable with an attractive growth rate. This is an excellent period for dealmaking opportunities if companies can achieve their value-creation objectives. We are mapping our tech target’s acquisition approach, which will have a diversified yet strong industry portfolio,” Shueb added.