The London Stock Exchange-listed payment technology company offers a suite of technology-enabled payments solutions to merchants and financial institutions of all types and sizes apart from acquiring and processing services and a range of value-added services
UAE-based Network International to be acquired by Brookfield in £2.2bn deal. (Credit: Gerd Altmann from Pixabay)
Brookfield Asset Management has reached an agreement with UAE-based payments solutions provider Network International to acquire the latter in a deal worth nearly £2.2bn.
According to the terms of the transaction, shareholders of the London Stock Exchange (LSE)-listed payment technology company will receive 400p in cash for each of its shares held.
Brookfield’s consideration represents a premium of about 64% to the closing price per Network International’s share of 243.6p on 12 April 2023.
Headquartered in Dubai, Network International offers a suite of technology-enabled payments solutions to merchants and financial institutions of all types and sizes.
It also provides acquiring and processing services and a range of value-added services.
Brookfield aims to combine Network International and UAE-based payments company Magnati, which is owned by private equity funds managed and advised by affiliates of the former with a 60% stake.
The combination will create a key platform in the Middle East and Africa payments space at scale to offer a full suite of offerings, said Brookfield.
Brookfield private equity group president Anuj Ranjan said: “We have followed the company for some time and share the team’s vision to build on that strong position by growing its offering to clients.
“With a long history of partnerships across the Middle East, Brookfield is a strategic partner with the track record of owning and operating mission-critical businesses, deep global technology expertise, and a history of building value through operational improvements to help Network realise its full potential.”
Network International operates through two divisions, namely Merchant Services and Outsourced Payment Services.
Merchant Services offers services and solutions that enable more than 150,000 merchants to accept digital payments from consumers.
Most of the revenue for the Outsourced Payment Services unit is said to come from issuer processing, while acquirer processing has a small contribution.
Founded in 1994, Network International was listed on the LSE in 2019.
Network International chairman Ron Kalifa said: “The strength of Network’s people and technology platform has enabled it to build on its position as a leading payment solution provider across the Middle East and Africa.
“The Enlarged Group will be well positioned to serve its customers and partners, and support the acceleration of digital payments in the markets it serves.
“The Board has carefully considered the Brookfield offer in the context of the long term growth prospects and opportunities available to the business, balanced against the current challenges and uncertainty in the global macroeconomic environment and the expected timeframe that would be required to generate a similar level of value creation for Network shareholders.”