Madrid (Spain) / London (United Kingdom) – Mubadala Capital, the wholly owned alternative asset management subsidiary of Mubadala Investment Company, today announced that it has reached an agreement to acquire a controlling stake in Babel, a Madrid-based IT and digital transformation services provider. Babel’s Executive Team and the Founders will retain a minority stake.

Established in 2003, Babel is recognized as one of the fastest growing European IT services firms in Europe. The company provides a wide range of solutions, including traditional IT services and cutting-edge technologies like AI, hyper automation, 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 explosive growth, driven by its dedication to providing superior value and best-in-class service delivery to its blue-chip clientele. This approach 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 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 centered on accelerating digitalization and the adoption of new technologies.

Tony Olivo, CEO of Babel, commented: “The addition of Mubadala Capital to our shareholder base significantly enhances our ability to pursue larger inorganic growth opportunities than we have previously undertaken, thanks to their extensive experience and financial strength. We are excited about this new chapter and look forward to tackling the ambitious goals we have set for the future together.”

Antoun Ghanem, Executive Director, and Head of Mubadala Capital’s European Private Equity Team commented: “Under the leadership of its best-in-class management team, Babel has made significant investments to expand its global footprint, diversify its services portfolio, and incorporate new technologies. The company is well-positioned to capitalize on the growing demand for digital transformation, particularly in advanced and evolving technologies such as cloud-enabled solutions, where investment is expected to surge. We are excited to support Tony Olivo and the entire Babel team in their next phase of growth to deliver on their vision.”

With Mubadala Capital’s backing, Babel plans to expand its suite of services and position itself as a consolidator in the fragmented IT Services space, with ambitions to establish itself as a globally recognized leader in the IT and digital transformation services sector.

Houlihan Lokey and ING served as financial advisors to Mubadala Capital alongside Kearney, Alvarez & Marsal, Latham & Watkins and PwC. The terms of the deal were not disclosed. The transaction is subject to customary regulatory approvals.