BLS International Acquires Citizenship Invest for Reported $31 Million

BLS International has acquired Citizenship Invest, a Dubai-based advisory firm specializing in residency and citizenship by investment programs. Citizenship Invest plans to leverage BLS’s global infrastructure to fuel rapid international expansion.

Citizenship Invest intends to open offices worldwide and launch a large-scale recruitment drive for sales consultants and other key roles. Iñigo de Luna, Citizenship Invest’s Managing Partner, expects this expansion to “multiply our sales exponentially in the coming three years.”

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.

Shikhar Aggarwal, Joint Managing Director of BLS, believes the move “strengthens synergies, boosts EBITDA, and leverages CI’s strong financial performance and high application success rate to drive growth and global market presence.”

IMI understands that BLS International acquired 100% of Citizenship Invest’s shares for US$31 million.

Citizenship Invest’s audited financial performance provides insight into the deal’s valuation. For the calendar year 2023, the company reported audited revenues of US$9.6 million and an EBITDA of US$4.4 million, reflecting a 45% EBITDA margin.

The company’s 2023 performance showed significant growth, with revenue increasing by 28% and EBITDA by 43% compared to the previous year.

Based on these figures, the rumored acquisition price would represent a multiple of approximately seven times (7x) EBITDA. 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.

Veronica Cotdemiey, CEO of Citizenship Invest, will remain involved as a consultant and advisor on the Board of Directors. De Luna will continue leading the company as Managing Partner, with his entire team staying on board.

De Luna revealed that Citizenship Invest had been seeking a strong partner to fuel its next growth phase since 2023. The company considered private banks, large travel agency groups, and top-tier visa companies before settling on BLS International.

Several private equity firms also expressed interest, given De Luna’s background as CEO of Spain’s largest asset management and private equity group.

Awad Capital Ltd., a DFSA-regulated company, facilitated the transaction as Citizenship Invest’s exclusive financial advisor. 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. Al Tamimi and Co. provided legal counsel to the sellers.

A rare occurrence

Acquisitions in the investment migration industry are uncommon, making this deal particularly noteworthy. Jeremy Savory, CEO of Savory & Partners, observes that “for a long time, investment migration has not been an environment conducive to acquisitions.”

The sector’s resistance to consolidation largely stems from the intangible nature of its assets. Savory explains that buyers in this field are primarily interested in “the network, the brand, and the expertise” rather than physical infrastructure.

He views the BLS-Citizenship Invest deal positively, noting that “the synergy is great, and it is an acquisition that makes sense.”

David Lesperance, Managing Partner of Lesperance & Associates, points out that while some firms are interested in adding residency and citizenship by investment advisory to their services, acquisitions rarely materialize.

He notes this hesitancy often results from “a lack of transparency on past revenue and future projections or reputational risk.”

He argues that the perceived reputational risks are frequently unwarranted, stemming from “spurious claims by the press and politicians about being a vehicle for tax evasion or other criminal behavior.”