Dubai: Abraaj Capital, a Dubai-based regional private equity firm, announced yesterday that it has completed the acquisition of a 49 per cent stake in Network International, the region's leading payment solutions provider.
Under the terms of the deal, which has been approved by the relevant regulatory authorities, Abraaj Capital, through Abraaj Financial Technologies Holdings Limited, has acquired the 49 per cent stake in Network International, a wholly owned subsidiary of Emirates NBD.
The acquisition was valued at Dh2 billion.
Abdullah Qasem, Chairman of Network International, said this partnership is all about expansion and consolidation of Network's market share.
New offerings
"Through this partnership with Abraaj Capital, which will facilitate access to regional networks, help drive strategic initiatives and enhance our ability to recruit world-class talent, Network International is now uniquely positioned to expand into new markets and consolidate its status in existing ones," said Qasem.
"We are currently in the process of identifying a range of potential regional acquisitions, which will further strengthen our ability to offer leading-edge solutions."
The management of both Abraaj and Network International said yesterday that the company intends to expand geographically and in terms of product offerings.
"We are looking at both the wider Middle East, North Africa and Levant in addition to new opportunities in the Indian sub-continent," said Ram Chari, CEO of Network International.
Despite the current political instability in the wider Middle East, Abraaj officials said they are confident of expanding the geographical reach of Network International in the region and beyond.
"The success of this transaction makes clear the vibrancy of the regional electronic payments sector, particularly in the UAE, as well as our confidence in the long-term growth opportunities for Network International," said Mustafa Abdul Wadood, CEO of Abraaj Capital.
Long-term ambitions
Senior officials from Emirates NBD said yesterday that the bank has no plans to further dilute its current shareholding of 51 per cent. However, they did not comment on the profit the bank made from the sale of stake in Network International.
"Our partnership with Abraaj Capital, based on the firm's depth of management experience and contribution to our future growth, will help allow Network International to realise its long-term ambitions," said Chari.
Network International currently serves around 70 banks and financial institutions in the region and more than 17,000 individual merchants represented in over 28,000 outlets using around 45,000 point of sale machines in the region.
The company offers its customers products and services in both the issuing and acquiring segment of the payments industry in the Middle East and Africa. The company also manages one of the region's most extensive ATM networks, currently exceeding 700 ATMs.
