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Babel invoices 180 million after growing 30% in 2023

The Spanish technology consulting firm increases its workforce by 15% to 3,200 employees.

The Spanish technology consulting firm Babel has recorded a turnover of 180 million euros in 2023, which represents a year-on-year growth of 27%. The company led by Tony Olivo has earned more than 21 million EBITDA during the year. Babel has improved its EBITDA margin by just over half a percentage point, reaching more than 11.5%.

Babel, backed by Aurica Capital , maintains the roadmap outlined in its strategic business plan , which plans to achieve a turnover of 300 million euros in 2025, with 36 million EBITDA and a workforce of 5,000 employees.

Last year, the technology consulting firm added 400 professionals to its global workforce, reaching a figure of 3,200 employees spread across ten countries. Babel emphasizes that the turnover rate stood at 13%, “well below the market average.” This year, the Spanish consulting firm’s goal is to reach 4,000 employees.

Acquisitions

In recent years, Babel has embarked on an ambitious international expansion plan supported by inorganic growth. “Last year we accelerated our international expansion, specifically in strategic Latin American countries, which will allow us exponential growth in our business in the coming years,” explains Tony Olivo, CEO of Babel.

The company, which increased its international revenues by 68% year-on-year in 2023, has nearly a thousand professionals working in Latin America.

Last year, the Spanish consulting firm acquired, for an undisclosed amount, the Mexican technology company Ironbit , which has a solid presence in the country’s financial sector. The operation added 200 professionals to the group. In 2022, the company acquired the Costa Rican Grupo Babel.

The Spanish consulting firm does not consider the acquisitions chapter closed, and is eyeing opportunities in countries such as Portugal and Chile .

In the last two years, the company has focused its inorganic strategy on Latin America. Previously, Babel took a big leap in 2020 with the purchase of Software AG ‘s professional services unit in Spain. Likewise, in 2021 it strengthened its cybersecurity with the acquisition of the firm Ingenia, based in Malaga.

In addition to closing strategic purchase operations, Babel foresees organic growth in its turnover of more than 20% this year, up to 220 million euros. Likewise, it expects to improve its EBITDA margin on revenue, reaching 12%.

Exit of Aurica Capital

Aurica Capital, which took a 25% stake in the Spanish company in 2021, is preparing to leave the group, as recently published by EXPANSIÓN and confirmed by Babel.

The manager has selected Rothschild as the business bank in charge of bringing the company to the market. The group’s valuation is expected to exceed 200 million.

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