Virtuzone's Strategic Acquisition by Ascentium Fuels Middle East Expansion
Deal News | Jan 21, 2025 | Zawya
In a significant strategic move, Virtuzone, a leading UAE-based company formation and corporate services provider, has been acquired by Ascentium, a global business services platform headquartered in Singapore. This acquisition is aimed at strengthening Ascentium's presence in the Middle East and enabling Virtuzone to expand into new markets including the Far East and Latin America. The acquisition, which includes Virtuzone's sister companies such as Taxready.ae, marks a consolidation of resources that will bolster corporate services and tax solutions in the region, aligning well with the region's economic growth prospects. Ascentium, backed by the private equity firm Hillhouse Investment, aims to inject capital into Virtuzone, enhancing its service offerings and expanding its regional influence. Virtuzone is well-known for introducing innovative AI-driven tools and has helped establish thousands of businesses in the UAE since its inception in 2009. This acquisition reflects the growing attraction of foreign investment in the UAE's thriving business ecosystem, where Virtuzone has played a pivotal role.
Sectors
- Business Services
- Private Equity
- Technology
Geography
- United Arab Emirates – Virtuzone is based in the UAE, a region noted for rapid economic growth and increasing foreign investment inflows.
- Singapore – Ascentium, the acquiring company, is headquartered in Singapore, which is a key financial hub in the Asia-Pacific region.
- Asia-Pacific – The acquisition is part of Ascentium's strategy to expand from APAC into the Middle East, indicating the geographical scale of the transaction.
Industry
- Business Services – The acquisition involves companies that provide corporate and business services, including company formation, tax consultancy, and administrative services.
- Private Equity – Hillhouse Investment, a major private equity firm, is backing the acquisition, showcasing its role in facilitating cross-border investment and mergers.
- Technology – Virtuzone's incorporation of AI-driven tools for corporate services emphasizes the technological advancement and innovation in the industry.
Financials
- 30.6 Billion USD – UAE's foreign direct investment inflows in 2023.
- 100 Billion USD – Assets under management by Hillhouse Investment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Virtuzone | Target company | Company | A leading UAE-based company formation and corporate services provider, known for its innovative AI solutions. |
| Ascentium | Acquiring company | Company | A global business services platform headquartered in Singapore, aiming to expand its presence in the Middle East. |
| Taxready.ae | Sister company | Company | An FTA-certified tax and accounting firm associated with Virtuzone. |
| Next Generation Equity | Sister company | Company | Offers citizenship and residency-by-investment programmes, part of Virtugroup. |
| MAKTABI | Sister company | Company | A world-class business centre located in Dubai, also part of Virtugroup. |
| Hillhouse Investment | Private equity firm and financial backer | Company | An asset manager managing USD 100 billion in assets, backing Ascentium's acquisition. |
| Neil Petch | Chairman and Co-founder | Person | Chairman and Co-founder of Virtuzone, involved in the acquisition strategy. |
| Lennard Yong | Founding Management and Group CEO | Person | CEO of Ascentium, driving the acquisition as part of strategic expansion. |
| George Hojeige | Group CEO | Person | CEO of Virtuzone, discussing the strategic benefits of the acquisition. |