Group 42, (G42) an Abu Dhabi-based artificial intelligence and cloud computing company, secured a "substantial investment” from US-based private equity manager Silver Lake.
G42 did not disclose the size of the stake or the amount invested. The new investment will be used to help it scale in the UAE and international markets.
According to The Wall Street Journal, Silver Lake is investing about $800 million for a minority stake in the Abu Dhabi technology company.
“Silver Lake has paid about $800m for a stake in G42, an artificial intelligence and cloud computing group with links to Abu Dhabi’s ruling family, in a move that strengthens the US private equity firm’s ties with the wealthy emirate,” Financial Times reported.
Shareholders of G42 include Chairman Sheikh Tahnoun bin Zayed Al Nahyan and Abu Dhabi sovereign-wealth fund Mubadala Investment Co.
“We are honored to partner with a world-class investor like Silver Lake and proud to be among their cutting-edge portfolio of technology leaders,” G42's chief executive Peng Xiao said.
As part of the deal, Silver Lake's managing partner and co-chief executive Egon Durban will join G42's board, the company said in a statement.
G42’s artificial intelligence, cloud computing, and technology offerings have enabled its clients to address a wide range of opportunities, including digitising large enterprises, improving regional healthcare, and enhancing government services.
Over the past year, G42 partnered with the Abu Dhabi Department of Health on COVID-19 pandemic management to provide scalable diagnostics and a nationwide vaccine rollout.
The company also expanded its capabilities through the acquisitions of Injazat, a regional market leader for digital transformation IT services, and Khazna Data Centres, a commercial wholesale data center provider.
With more than $79 billion in combined assets under management, Silver Lake took stakes in Airbnb Inc, Expedia Group and Gio Platforms Ltd during the pandemic.
(Reporting by Brinda Darasha; editing by Seban Scaria)
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