BML Istisharat sold
to UAE-based fund
Management to remain mostly unchanged
Mawarid Finance, an Islamic finance company based in Dubai, has paid $15 million to acquire the entirety of BML Istisharat, one of the oldest Beirut-based software development companies. BML Istisharat’s forte is banking software, with 250 clients installed in 35 countries. The company also provides insurance and ERP software solutions.
Joe Faddoul has stepped down as chairman of the company, but will remain on the board of directors. A new chairman will be elected during the next general shareholder assembly. Raji Challita has been promoted from Software Manager to CEO.
The transaction has been closed at slightly below eight times the company's EBITDA value.
“It makes a lot of sense for the company to be acquired by a Gulf-based company, because only four of our installed clients are in that region. This will open the door for major market expansion,” said Faddoul.
According to a letter Faddoul sent to clients, Mawarid’s involvement will be primarily focused on seizing growth opportunities, in Lebanon and internationally, and investing in solutions and capabilities. All company employees are being retained in their current roles. Business terms will not change, and the company's products and solutions will continue to be supported. The company plans to significantly invest in improving functionality and user interfaces.
Mawarid Finance PJSC, an Islamic finance company, provides a portfolio of Islamic finance products and services. It is chaired by Mohamed Ali Abdullah S. Musabbeh Al Nuaimi. Its activities include SME finance, retail finance services, money exchange, securities, and financial intermediation. It also has investments in other companies including technology, health care, and Islamic insurance. It has 380 shareholders and, in 2016, had around $320 million in equity.
Date Posted: Mar 13, 2018