PC: Zawya
Overview of the Deal
Mashreq Bank, Dubai’s biggest lender, agreed to sell a 65 percent stake in NeoPay, a label under IDFAA Payments Services LLC. The stake buyers would include Arcapita Group Holdings Limited and Dgpays S.A.R.L., a Turkish fintech firm. This puts NeoPay’s enterprise value at about $385 million.
Long-term Partnership
The transaction is also subject to a long-term shareholder agreement between Mashreq Bank and the new investors, Arcapita and Dgpays, to support the growth and development of NeoPay. This partnership is indeed strategic in the pursuit of promoting future growth and development for NeoPay. The deal underlines the commitment that Mashreq Bank has towards innovation in the payments sector through partnerships with leading firms from the financial services and fintech sectors.
Role of NeoPay in Payment Solutions
NeoPay is one of the few major payment processors in their industry, providing businesses with diversified services for processing all kinds of transactions. Solutions are mainly in point of sale, eCommerce, mobile payments, and a number of alternative types of non-cash payment. Using these solutions, NeoPay makes it easy for businesses to conduct their own payment processes across different platforms while making sure that all in-person and digital transactions take place without any hitch. This section shall pinpoint buyers’ profiles.
Buyers include Arcapita Group Holdings Limited, an alternative asset manager with a global presence in strategic markets, presently including the GCC, Singapore, the UK, and the USA. Arcapita has an exemplary track record of investments laid in many industries. Its investment in this transaction further strengthens its recent interest within the fintech and payment solutions arena.
The second buyer is Dgpays S.A.R.L., a Turkish FinTech firm with operational bases in the UAE, Luxembourg, and the USA. Dgpays concentrates on providing ground-breaking financial technology solutions and is an excellent partner to NeoPay in its future expansion.
With this deal, Mashreq Bank is well-positioned to capture the high-growth fintech sector, while continuing to be an active player under its shareholder agreement with Arcapita and Dgpays. A 65% sale of NeoPay does hint at a serious attempt on the bank’s part to align itself with newer global financial technology phenomenons and secure continuing future success for its payments franchise.
