Abraaj buys 49% of Network Int'l
Payment solutions provider Network International and private equity group Abraaj Capital on Wednesday announced the signing of a partnership agreement to enhance the former’s strong growth and accelerate the geographic expansion of the company’s market-leading payments processing platform.
Under the terms of this agreement, Abraaj Capital through Abraaj Financial Technologies Holdings Limited will acquire a 49 per cent stake in Network International for a price of around Dh2 billion ($539 million), which includes a sum contingent upon attainment of profitability targets and a portion financed by Emirates NBD as is normal in such transactions, an official release said.
Following the signing of the agreements, which are subject to relevant regulatory approvals, the acquisition is expected to be finalised in the first quarter of 2011.
Network International, a wholly owned subsidiary of Emirates NBD, a leading bank in the region, 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 investment in Network International will be the inaugural transaction made through Abraaj’s flagship fund, Abraaj Buyout Fund IV, which seeks to generate medium to long-term capital appreciation by acquiring control-themed interests in established businesses across the region, with a primary focus on the Gulf Cooperation Council states, North Africa, Turkey, South Asia, and the Levant.
“Led by an experienced management team and benefiting from the strength of its founding shareholder, Emirates NBD, Network International is a regional leader in its industry and is well-positioned as a platform for sustained future growth,” said Mustafa Abdel-Wadood, Managing Director and CEO, Abraaj Investment Management.
“Today, Network International is at the forefront of the regional trend towards electronic payments,” said Abdulla Qassem, Chairman of Network International. “We believe that through its continued investment in technology, people and customer relationships, Network International will build on its history of innovation and industry leadership, expanding into new markets and consolidating its status in existing ones.”