Babel, a Spanish multinational specialising in digital transformation services, announces the entry of Mubadala Capital, an investment fund manager belonging to the sovereign group of Abu Dhabi known as Mubadala Investment Company, into its shareholding. Mubadala Capital has a presence in Abu Dhabi, London, New York, San Francisco, and Rio de Janeiro. With this transaction, the fund becomes the majority shareholder of Babel. The current management team will retain a significant minority stake. The terms of the agreement have not been disclosed. The transaction is subject to customary regulatory approvals.
As part of a planned move at the end of last year, Babel engaged Rothschild & Co, an investment banking firm, as advisors in the process to coordinate the exit of Aurica Capital as a minority shareholder of the group after four years of supporting the consultancy firm in its transformation.
This operation will provide Babel with the financial capacity needed to achieve its growth and international expansion objectives, coinciding with the launch of Hyperspace 2029, its new strategic plan aimed at quintupling current figures to reach €1 billion in turnover by the end of 2029.
Founded in 2003, Babel is a consultancy specialising in the development and implementation of solutions for digital acceleration. It is recognised as one of the fastest-growing IT services companies in Europe. Babel is currently present in ten countries and employs more than 3,400 people. Its clients include many of the major corporations in the countries where it operates, with a strong representation in the financial and insurance sectors, offering services based on cutting-edge technologies such as big data & analytics, artificial intelligence, cybersecurity, hyper-automation, low-code, and cloud migration, among others.
Mubadala Capital's investment in Babel reinforces its growing presence in the business services sector. With the backing of Mubadala Capital, Babel plans to expand its range of services and position itself as a consolidator in the fragmented IT services space, with the ambition to establish itself as a globally recognised leader in the digital transformation and IT services sector.
In a sector undergoing significant consolidation, such as consulting, Babel positions itself as a leading candidate to become the build-up platform upon which to construct a major consultancy capable of competing with the large multinational players in the sector.
The company currently operates in Spain, Portugal, Morocco, Mexico, Costa Rica, Chile, Colombia, Panama, the Dominican Republic, and Guatemala. In 2020, it acquired the professional services division of the German company Software AG in Spain, followed in 2021 by the Malaga-based firm Ingenia, specialising in cybersecurity. Subsequently, in 2022, it completed the acquisition of Grupo Babel in Central America, the Mexican company Ironbit in 2023, and at the beginning of 2024, the Portuguese company KinetIT. All these acquisitions have been fully integrated into Babel’s processes, culture, and identity, operating as a single group and contributing significant value to the company's offering while preparing it for larger future acquisitions. The company expects to announce new acquisitions in the coming months.
Tony Olivo, CEO of Babel, highlighted that "the entry of Mubadala Capital into our shareholding will boost our capabilities to undertake larger inorganic operations than those carried out to date, as it has the necessary experience and financial strength to do so. We are very excited about the new phase beginning with the arrival of our new financial partner and about tackling the challenging objectives we have set for the future together."
He continued, "I would also like to express our sincere thanks to Aurica for being the ideal partner during this phase, culminating in the qualitative and quantitative leap we have achieved over the past few years. Lastly, I would like to congratulate the Rothschild & Co team for the fantastic advice they have provided throughout the process."
Antoun Ghanem, Executive Director and Head of the European Private Capital Team at Mubadala Capital, commented: "Under the leadership of its world-class management team, Babel has made significant investments to expand its global presence, diversify its service portfolio, and incorporate new technologies. The company is well-positioned to capitalise on the growing demand for digital transformation, particularly in emerging technologies, where investment is expected to increase. We are excited to support Tony Olivo and the entire Babel team in their next phase of growth to achieve their vision."
Iván Plaza, Partner at Aurica Capital, stated: "Aurica's exit from Babel's capital marks the end of an extraordinary phase in which the management team has played a key role in the company's transformation and international expansion. From the outset of our involvement, we have focused on working hand in hand with Babel's management team to drive its international expansion plan and to chart an ambitious roadmap by adding strategic acquisitions to the company’s own business development. This new chapter for Babel underscores the success of our strategy and highlights the value we have created within the company."
About Babel
Babel is a Spanish multinational technology company specialising in digital transformation solutions. The firm aims to be a benchmark in the provision of services to large companies and public bodies, characterised by service quality, customer trust, and professional commitment. It is currently among the top 10 Spanish-owned technology consultancies, with over 3,400 professionals, and recorded revenues of €180 million in the last financial year. This year, it expects to exceed €210 million in turnover. The multinational has a distinctive corporate model, with professionals strongly connected to the group. Transparency and communication are key elements that differentiate it from its competitors. Offering employees a long-term career in which individual merit is valued is one of its missions.
For further information, visit www.babelgroup.com
About Mubadala Capital
Mubadala Capital is the asset management subsidiary of Mubadala Investment Company, a global sovereign investor based in Abu Dhabi, United Arab Emirates, with approximately $302 billion in assets. Mubadala Capital manages approximately $24 billion in its own investments and third-party capital vehicles on behalf of institutional investors, including four flagship private equity funds, four early-stage venture capital funds, three funds in Brazil focused on special opportunities, and a diversified investment strategy centred on private market opportunities, as well as a series of co-investment vehicles, SPVs, and continuation funds. Mubadala Capital has offices in New York, San Francisco, London, Rio de Janeiro, and Abu Dhabi. For further information, visit www.mubadalacapital.ae
About Aurica Capital
Aurica Capital is an independent private equity management firm investing in the growth capital segment. The firm takes minority but significant stakes in middle-market Spanish companies with a clear vision of growth and expansion. Its portfolio of companies generates over 70% of its sales abroad and includes Agrosol, which produces and markets fruit and vegetable products; Grupo Larrumba, a leading company in the restaurant sector; Winche, specialising in sales force outsourcing and point-of-sale management; the manufacturer of bedding solutions, Flex; Babel, a consultancy supporting digital transformation; SamyRoad, a company specialising in influencer marketing advocacy and branded content, leading in Europe and Latin America; t2ó, a marketing, sales, and digital strategy consultancy; Educa Edtech Group, a national leader in online training; Canitas Veterinaria, Andalusia's leading chain of clinics specialising in pet health; and Alquiler Seguro, Spain's first company offering protection to landlords to prevent rent defaults. Aurica Capital Desarrollo S.G.E.I.C. S.A. is registered with the CNMV under registration number 104. For further information, visit www.auricacapital.com.
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