Houlihan Lokey Advises Mubadala Capital
Houlihan Lokey is pleased to announce that Mubadala Capital, the wholly owned alternative asset management subsidiary of Mubadala Investment Co., has agreed to acquire a controlling stake in Babel, a Madrid-based IT and digital transformation services provider. Houlihan Lokey served as financial advisor to Mubadala Capital.
Established in 2003, Babel is recognised as one of the fastest-growing IT services firms in Europe. The company provides a wide range of solutions, combining both traditional IT services and cutting-edge technologies like AI, hyperautomation, DevOps, cloud migration, and cybersecurity. Babel is committed to supporting its clients through their digital transformation journeys, underpinned by a people-first culture. The company has experienced a period of exponential growth, driven by its dedication to providing superior value and best-in-class service delivery to its blue-chip client base. This approach, together with strong client verticals expertise, has enabled Babel to consistently outperform its peers in the Iberian and Latin American IT markets, where it has emerged as a key player.
Mubadala Investment Co. is a c. $302 billion global sovereign investor headquartered in Abu Dhabi, UAE. Mubadala Capital manages c. $24 billion in aggregate across its own balance sheet investments and in third-party capital vehicles on behalf of institutional investors, including four flagship private equity funds, four early-stage venture funds, three funds in Brazil focused on special opportunities and a highly diversified evergreen investment strategy focused on private market opportunities, as well as a series of co-investment vehicles, SPVs, and continuation funds.
Mubadala Capital’s investment in Babel reinforces its expanding presence in the business services sector. This acquisition complements recent investments in that space, such as safety-critical training company RelyOn Nutec in 2024. Furthermore, the acquisition highlights Mubadala Capital’s commitment to investing in emerging leaders in their markets, with Babel’s mission centred on accelerating digitalisation and the adoption of new technologies.
Houlihan Lokey served as financial advisor to Mubadala Capital. Closing of the transaction is subject to customary regulatory approvals.
This transaction highlights Houlihan Lokey’s expertise and success in the European IT, digital transformation, and cybersecurity services industry; the firm’s strong local relationships, footprint, and connections in the Iberian and Latin American markets, combined with the leverage of global team experience throughout the competitive process; and the effective synergies between the firm’s Technology Services practices in Europe and Latin America.