A consortium of financial infrastructure technology provider Dgpays and alternative investment firm Arcapita Group agreed to acquire a majority stake in UAE-based payment solutions provider Neopay from Mashreq at an enterprise value of around $385m.
According to the terms of the agreement, UAE-based private banking company Mashreq will maintain a significant minority interest in Neopay.
Established as a division within Mashreq, Neopay serves various client bases across sectors like retail, hospitality, government, and e-commerce. The firm offers a portfolio of payment options and tailor-made solutions.
Neopay is focused on delivering acquiring and issuer processing services to merchants and financial institutions in several geographies.
By combining its in-house processing capabilities and various merchant front ends, the firm develops personalised product offerings with a quick go-to-market. Besides, Neopay’s tech stack enables it to co-create or integrate into any merchant and financial institution’s programmes.
Through the transaction, Neopay intends to expand its presence in the digital payments sector in the Middle East.
Neopay CEO Vibhor Mundhada said: “Neopay has established itself as a leader in the digital payments sector by consistently innovating and delivering value to our clients.
“With the technological and financial backing of our new shareholders, alongside Mashreq’s continued support, we are well-positioned to accelerate our growth in the UAE and expand our footprint across the Middle East.”
The consortium’s support will enable the payment solutions provider to further expedite its growth trajectory and offer new services.
Dgpays CEO Serkan Omerbeyoglu said: “By integrating our fintech solutions with Neopay’s robust platform, we aim to unlock new opportunities for growth and innovation and present these innovative solutions to the enterprise and SME market of the UAE and broader GCC market.”
The completion of the transaction is contingent upon necessary regulatory approvals.
For the transaction, Goldman Sachs International, DIFC Branch was the financial adviser to the Mashreq, while deNovo Partners advised the consortium. Clifford Chance was legal counsel to Mashreq and Freshfields was the consortium’s legal counsel.
