Beyond ONE, a newly formed subsidiary of private global investment company Priora Management Holding Dubai, announced the acquisition of Virgin Mobile Middle East and Africa (VMMEA), the region’s largest mobile virtual network operator (MVNO).
Virgin has active operations under its Virgin Mobile and Friendi Mobile brands in Saudi Arabia, the UAE, Oman and Kuwait.
Significantly, the acquisition deal is the first foreign ownership transaction to be approved under the 2021 Royal Decree sanctioning foreign direct investment (FDI) and full ownership of organisations in a number of sectors within Saudi Arabia.
Virgin Mobile acquisition
The deal is also the first one for Beyond ONE, a TMT-sector (technology, media, telecommunications) investment and operations company established in 2021 in Dubai.
The deal envisages Virgin Group investing alongside Beyond ONE, retaining a minority stake in the company and a seat on the board.
Markus Tagger, Group CEO of Beyond ONE said the investment firm is looking at acquisition of companies with a strong position and significant growth potential in their respective markets, and VMMEA’s operations comfortably meet these requirements.
“Both Virgin Mobile and Friendi Mobile benefit from strong brand equity and significant trust from their customers, partners and employees, and we will do what is in our power to maintain this,” Tagger said.
“With a focus on expansion, Beyond ONE will, over time, introduce new services, experiences and technology that will simplify and benefit our customers’ lives,” he added.
With the Virgin acquisition, Beyond ONE intends to become a leading digital services provider radically reshaping consumers’ interaction with technology in growth markets around the world, the company said in a statement.
The investment strategy and operational management of the company is led by a team of seasoned international industry executives.
Virgin Mobile Middle East
VMMEA, a pioneer MVNO (mobile virtual network operator) in the Middle East since 2006, currently serve more than three million users in multiple GCC countries.
Beyond ONE will acquire the entire operation of VMMEA and will increase its shareholding to control positions in all local country operations by buying out minority shareholders.
For VMMEA, the timing of the acquisition is on track with the long-term strategy agreed by its shareholder base following its successful 15-year growth path.
Josh Bayliss, CEO of the Virgin Group, said: “Today marks the start of an exciting new chapter for Virgin Mobile Middle East and Africa. Virgin Group is a long-standing investor in the company and is looking forward to the partnership with Beyond ONE as it heralds a new digital future for the region.”
Beyond ONE’s investment is testament to the opportunity which lies ahead – for customers, employees and the countries in which Virgin Mobile operates – in bringing better mobile connectivity to consumers and businesses, Bayliss said.
VMMEA will be led by the seasoned Beyond ONE executive team alongside most of the existing VMMEA team in each market.
The acquisition signals confidence in the continued growth potential of the TMT-sector in the region and reiterates latest insights on global merger and acquisition (M&A) activity for the sector.
Beyond ONE said it is on track to complete further acquisitions in other high growth markets around the world and is currently in negotiations with additional targets in the communications, fintech and entertainment space.
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