Latest / IMI Podcasts / BLS International Acquires Citizenship Invest for Reported $31 Million

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BLS International Acquires Citizenship Invest for Reported $31 Million · IMI Podcasts

• 0:00
  SPEAKER_00: BLS International has acquired Citizenship Invest, a Dubai-based advisory firm specializing in residency and citizenship by investment programs.
• 0:10
  SPEAKER_00: Citizenship Invest plans to leverage BLS's global infrastructure to fuel rapid international expansion.
• 0:17
  SPEAKER_00: Citizenship Invest intends to open offices worldwide and launch a large-scale recruitment drive for sales consultants and other key roles.
• 0:26
  SPEAKER_00: Inigo de Luna, Citizenship Invest's managing partner, expects this expansion to multiply our sales exponentially in the coming three years.
• 0:36
  SPEAKER_00: BLS International, which holds contracts with 46 governments for visa processing services, considers the acquisition as a step in enhancing its capabilities in Visa and consular services.
• 0:49
  SPEAKER_00: Shikhar Agarwal, Joint Managing Director of BLS, believes the move, quote, strengthens synergies, boosts e-bita, and leverages CI's strong financial performance and high application success rate to drive growth and global market presence.
• 1:06
  SPEAKER_00: End quote.
• 1:07
  SPEAKER_00: IMI understands that BLS International acquired 100% of Citizenship Invest's shares for$31 million.
• 1:17
  SPEAKER_00: Citizenship Invest's audited financial performance provides insight into the deal's valuation.
• 1:23
  SPEAKER_00: For the calendar year 2023, the company reported audited revenues of$9.6 million and an e-bidda of$4.4 million, reflecting a 45% E-bita margin.
• 1:37
  SPEAKER_00: The company's 2023 performance showed significant growth, with revenue increasing by 28% and E-bita by 43% compared to the previous year.
• 1:48
  SPEAKER_00: Based on these figures, the rumored acquisition price would represent a multiple of approximately seven times e-bitda.
• 1:55
  SPEAKER_00: This transaction, one of the first major acquisitions of its kind in the sector, could serve as an interesting benchmark for the investment migration industry.
• 2:05
  SPEAKER_00: Veronica Cotomy, CEO of Citizenship Invest, will remain involved as a consultant and advisor on the board of directors.
• 2:13
  SPEAKER_00: DeLuna will continue leading the company as managing partner, with his entire team staying on board.
• 2:20
  SPEAKER_00: DeLuna revealed that Citizenship Invest had been seeking a strong partner to fuel its next growth phase since 2023.
• 2:28
  SPEAKER_00: The company considered private banks, large travel agency groups, and top-tier visa companies before settling on BLS International.
• 2:37
  SPEAKER_00: Several private equity firms also expressed interest, given De Luna's background as CEO of Spain's largest asset management and private equity group.
• 2:47
  SPEAKER_00: Awad Capital Limited, a DFSA regulated company, facilitated the transaction as Citizenship Invest's exclusive financial advisor.
• 2:58
  SPEAKER_00: Ziad Awad, CEO of Awad Capital, sees the deal as exemplifying the robust opportunities within the GCC entrepreneurship ecosystem and bringing foreign direct investment into the UAE.
• 3:12
  SPEAKER_00: Altamimi and Corporation provided legal counsel to the sellers.
• 3:17
  SPEAKER_00: Acquisitions in the investment migration industry are uncommon, making this deal particularly noteworthy.
• 3:24
  SPEAKER_00: Jeremy Savory, CEO of Savory and Partners, observes that, quote, for a long time, investment migration has not been an environment conducive to acquisitions, end quote.
• 3:36
  SPEAKER_00: The sector's resistance to consolidation largely stems from the intangible nature of its assets.
• 3:42
  SPEAKER_00: Savory explains that buyers in this field are primarily interested in, quote, the network, the brand, and the expertise, end quote, rather than physical infrastructure.
• 3:55
  SPEAKER_00: He views the BLS Citizenship Invest deal positively, noting that, the synergy is great, and it is an acquisition that makes sense.
• 4:04
  SPEAKER_00: David Lesperants, managing partner of Lesperance and Associates, points out that while some firms are interested in adding residency and citizenship by investment advisory to their services, acquisitions rarely materialize.
• 4:19
  SPEAKER_00: He notes this hesitancy often results from, quote, a lack of transparency on past revenue and future projections, or reputational risk.
• 4:28
  SPEAKER_00: End quote.
• 4:29
  SPEAKER_00: He argues that the perceived reputational risks are frequently unwarranted, stemming from, quote, spurious claims by the press and politicians about being a vehicle for tax evasion or other criminal behavior.
• 4:44
  SPEAKER_00: End quote.
• 4:46
  SPEAKER_00: This episode first appeared as an article by Ahmed Abbas on imidaily.com.
• 4:53
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• 5:00
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