Target Information

ServiceMarket, a prominent online marketplace in the UAE, specializes in providing over 40 household services across multiple segments. With a strong market presence, ServiceMarket is well-positioned to enhance etisalat by e&’s existing service offerings, which are branded under 'Smiles'. This includes various services such as online food and grocery delivery, lifestyle offerings, and a rewards program that allows customers to earn and redeem points at more than 10,000 locations throughout the UAE.

Industry Overview

The online services industry in the UAE has experienced rapid growth, driven by a rise in digitalisation and changing consumer preferences. More customers are now looking for convenient solutions that can be accessed from home, fueling demand for digital platforms that offer a wide range of services. As a result, players in this sector are expanding their offerings to cater to the evolving needs of consumers.

The UAE government has also been focusing on improving its digital economy, promoting initiatives aimed at enhancing technological infrastructure and encouraging digital transformation across various sectors. This has created a favorable environment for businesses like ServiceMarket to thrive, as more consumers increasingly rely on online services.

In addition, with the nationwide push towards a digital-first approach, businesses such as etisalat by e& are actively seeking avenues to diversify their portfolios and enhance customer satisfaction. The synergies between traditional telecommunications and digital service platforms can lead to significant growth opportunities across the industry.

As digital services continue to proliferate, companies operating in the UAE must stay competitive and agile to meet the demands of their consumer base. The presence of established brands like etisalat by e& allows for greater market penetration and an increased capacity to innovate within the online services industry.

Rationale Behind the Deal

This acquisition aligns with etisalat by e&'s strategic initiative to expand its Smiles platform by incorporating a diverse range of household services through ServiceMarket. With the increasing number of consumers preferring convenient and trustworthy access to services online, this move is expected to enhance customer engagement and satisfaction significantly.

Moreover, by integrating ServiceMarket into its operations, etisalat by e& aims to bolster its position within the digital marketplace and contribute to the UAE's overall ambition of becoming a leading digital economy in the region.

Information About the Investor

etisalat by e& is a key player in the telecommunications sector in the UAE, known for its robust network and innovative service offerings. The group's rebranding to e& in February 2022 reflects its vision to diversify beyond traditional telecommunications into a range of digital services. With a commitment to elevating customer experiences across various platforms, e& has been at the forefront of digital transformation initiatives.

The company is focused on providing next-generation technologies and solutions that span entertainment, retail, and financial technology. Its strategic investments also cover advancements in cybersecurity, cloud solutions, and artificial intelligence, positioning e& as a leading force in driving digital innovation across the region.

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This acquisition represents a significant milestone for both etisalat by e& and ServiceMarket, providing strategic synergies that can enhance the overall value of services provided to consumers. By integrating a well-established online services marketplace into its portfolio, etisalat by e& is not only tapping into a growing market but is also reinforcing its commitment to digital transformation within the UAE.

From an investment standpoint, this move appears to be well-calculated, considering the increasing demand for convenient and accessible online services in the region. As consumer preferences continue to evolve towards digital solutions, the acquisition of ServiceMarket could serve as a lucrative addition to etisalat by e&’s service ecosystem.

Furthermore, this deal offers the potential for scale and operational efficiencies through shared resources and enhanced customer engagement strategies. As such, it is likely to contribute positively to etisalat by e&’s overarching growth strategy in the UAE and beyond.

Overall, the acquisition of ServiceMarket can be viewed as a smart investment that strengthens etisalat by e&’s competitive position in the digital services landscape while aligning with national goals for economic digitalisation and consumer empowerment.

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