Dubai: A Dh100 million deal announced yesterday in Dubai has ensured the merger of two digital and electronics retail dealers, CompuMe and i2 Mobile.
The new company will offer its products in 13 Virgin Megastores in the region. There are seven Virgin Megastores in the UAE, two in Qatar and one each in Kuwait, Bahrain, Egypt and Jordan.
Dikran Tchablakian, CEO and founder of CompuMe, will become chairman of the new entity. He told Gulf News that the deal, which was assessed and endorsed by the Arab Emirates Investment Bank, will create a company that is among the five major digital products distributors in the UAE and the region.
He said he believed that, given the economic downturn, it was the right time for buyouts and mergers so as to be well positioned when things improve.
"The investments in this project will be worth much more when the market picks up in [some] months' time. I thought it was the right time to consolidate our position in the market and even grow with this merger," he said.
Tchablakian said he believed in the ability of the retail market to bounce back in the UAE and in the region, regardless of prevailing trends. Furthermore, he said consumers in the UAE were looking for good prices and after-sales service and that this is what distinguishes top brands.
"I think the market will be active in 2011 and the retailers who are ready in this year will get the benefits. At any case, the cost of merging and expansion is quite competitive and rewarding at this stage ..." he said.
The merger would allow management to focus on the growth of the company, Tchablakian added.
