Thomson Reuters, a global information provider, has bought Zawya, a Middle East business intelligence and information group, for an estimated US$40 million (Dh146.9m).
The vendors are Saffar Capital, a regional private equity company, and several founding shareholders of Zawya, which was launched in 2000 by the Iraqi-born entrepreneur Ihsan Jawad in London, followed by a Dubai launch two years later.
"As an entrepreneur, especially in the internet space, it's gratifying to be able to conclude an exit to such a quality name," Mr Jawad said.
"The valuation is good in current market circumstances. In this region, where equity flotations are difficult, the only route to exit is via an industry sale and I'm delighted to sell to such a high-quality organisation as Thomson Reuters. It's a win-win for all parties concerned."
Although the price was not disclosed, sources close to the transaction said Thomson Reuters had paid about $40m for the company.
Zawya has about 200 employees in the region, mainly in Lebanon and Dubai. Russell Haworth, Thomson Reuters' managing director for the Middle East and North Africa, said the aim was to grow the business and increase the workforce.
Zawya's subscription model relies on more than 5,000 subscribers paying a minimum of $7,000 per year for breaking news, analysis and specialist business information. Some subscribers pay much more for premium content and additional services.
Zawya's news services are provided by Dow Jones, an agency owned by the media mogul Rupert Murdoch, under a contract that has two years to run.
Thomson Reuters said there were no immediate plans to replace Dow Jones' content with that of Reuters.
"Zawya has built a strong brand and impressive offering in Mena and this acquisition builds on our commitment to this region, which dates back to 1856," said Basil Moftah, Thomson Reuters' managing director for the Middle East, Africa and Russia.
"By joining forces, Thomson Reuters, Zawya clients and the market will benefit from a unique offering. This synergy will result in an improved and diversified line of services across the Mena markets for a broader group of users," Mr Moftah said.
Thomson Reuters plans to enhance Zawya's existing product in several ways, Mr Russell said. "We aim to expand more outside the UAE, add to the Islamic finance product and develop further Zawya's expertise in project finance information. We are also looking at ways to put more information into the Arabic language."
The Zawya deal is Thomson Reuters' second acquisition in the Middle East in a matter of weeks after the recent purchase of the legal publishing business Lexgulf, also for an undisclosed amount.
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