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Mubadala takes stake in Group 42

Dubai - Addition of Khazna, Injazat will deepen tech leader’s capabilities

Dubai — Mubadala, the Abu Dhabi-based sovereign investment company, announced on Monday it has acquired a stake in Group 42 (G42), an artificial intelligence and cloud computing company.

Mubadala, which manages $232 billion in assets, said in a statement that the investment was made through ownership transfer of two information technology companies it owns — Injazat and Khazna — to the G42.

While the exact size of the stake was not disclosed, the statement said “as a result of the transaction, Mubadala will become a minority shareholder in G42,” which is also based in Abu Dhabi.

The state fund has been active over the past several months with a buying spree, securing stakes in several fast growing overseas technology companies as part of a diversification strategy.

Following the ownership transfer Injazat and Khazna – both homegrown industry leaders nurtured over the past decade as part of Mubadala’s information, communications & technology portfolio – will become part of G42’s deepening technology capabilities and accelerate G42’s cloud business and its ability to deliver holistic and scalable technology solutions while growing national talent and investing in local capacity, said the state fund.

Khaldoon Khalifa Al Mubarak, Mubadala group Chief executive officer and managing director, said the decision is consistent with the fund’s strategy of investing in next-generation technology companies that are poised for substantial growth. “G42 is highly respected as a technology leader, with a broad portfolio covering major areas including healthcare, smart cities, analytics, and energy.”

“We incubated Khazna and Injazat and invested in them to become leaders in their field. G42 will benefit from their strong operational capabilities and complementary offerings. With the outstanding talent this adds to G42, it will continue to break new ground across many key sectors,” said Al Mubarak.

Peng Xiao, CEO of Group 42, said expertise of Injazat and Khazna, respectively in end-to-end digital and data center solutions, would significantly expand and enhance its product and service offering for r clients.

“These are two great technology entities, and this agreement reflects G42’s continuous effort to deliver cutting-edge, AI-enabled solutions to the region. Equally, we are looking forward to the expertise Mubadala brings to our organization, having founded and grown not only these two thriving companies, but also other complementary businesses,” said Xiao.

Injazat is a regional market leader for digital transformation, cloud and cyber security. Khazna provides organisations with dedicated commercial wholesale data center solutions.

The deal marks the latest in G42’s efforts to add to its growing technology portfolio. In January of 2020, G42 announced the acquisition of Bayanat, an end-to-end geospatial data products and services provider.

In September of 2020, G42 became the first UAE-based company to establish an office in Israel, following the signing of the Abraham Accord. G42 continues its leadership in fundamental and applied research that pushes the boundaries of AI knowledge and its implementation to solve complex problems.

— issacjohn@khaleejtimes.com