Arcapita Group Holdings Limited Partners with Dgpays and Mashreq to Acquire Majority Stake in NEOPAY
In a groundbreaking move, Arcapita Group Holdings Limited (“Arcapita”), a global alternative investment firm, has joined forces with Dgpays, a leading financial infrastructure technology provider in the EMEA region, and Mashreq, one of the UAE’s premier financial institutions. Together, they form a Consortium that has agreed to acquire a majority stake in NEOPAY, the UAE’s rapidly growing payment solutions provider. Mashreq will retain a significant minority interest in the venture. The deal values NEOPAY at approximately $385 million and is pending regulatory approval.
This acquisition marks a pivotal moment for NEOPAY as it seeks to expand its footprint in the burgeoning digital payments sector in the Middle East. With the strategic backing of the Consortium, NEOPAY is poised to accelerate its growth trajectory and introduce new services, harnessing the cutting-edge technology of Dgpays.
NEOPAY has established itself as the fastest-growing payment solutions provider in the UAE, gaining traction among merchants and e-commerce players. The country’s card transaction value is projected to increase at double-digit rates over the next five years, presenting lucrative opportunities for NEOPAY to capture a larger market share.
Initially formed as a division within Mashreq, NEOPAY has experienced substantial growth in recent years, catering to a diverse clientele spanning various sectors including retail, hospitality, government, and e-commerce. The company’s expansion is fueled by the dynamic economic landscape of the UAE, characterized by a youthful, digitally savvy population, robust GDP growth, and government initiatives promoting digital transformation and a cashless economy.
Serkan Omerbeyoglu, CEO of Dgpays, expressed enthusiasm about supporting NEOPAY’s evolution in collaboration with Mashreq. He highlighted NEOPAY’s remarkable growth and innovation in the UAE’s digital payments arena and emphasized the potential for expanding this success across the wider Middle East region through strategic partnerships and cutting-edge technology.
Atif A. Abdulmalik, CEO of Arcapita, echoed the sentiment, emphasizing NEOPAY’s alignment with Arcapita’s investment strategy focused on market-leading companies with strong growth potential. He underscored NEOPAY’s positioning to benefit from the UAE’s digital payment evolution, driven by increasing GDP, a tech-savvy youth demographic, and government-led digital transformation initiatives.
Ahmed Abdelaal, Group CEO of Mashreq, described the transaction as a pivotal moment for NEOPAY’s journey towards becoming a regional leader in digital payments. He expressed confidence in Arcapita and Dgpays’ expertise and vision to propel NEOPAY’s expansion plans across the Middle East, while also acknowledging Mashreq’s continued support and stake in the company.
Vibhor Mundhada, CEO of NEOPAY, shared his excitement about the next phase of growth with the backing of Arcapita and Dgpays. He emphasized NEOPAY’s commitment to innovation and delivering value to clients, along with the potential for accelerated growth in the UAE and expansion throughout the Middle East.
This acquisition signifies a strategic partnership between Arcapita, Dgpays, and Mashreq, demonstrating a collective dedication to driving innovation and growth in the digital payments sector across the Middle East.
Goldman Sachs International, DIFC Branch served as financial advisor to the seller, while deNovo Partners advised the Consortium. Legal counsel was provided by Clifford Chance for Mashreq and Freshfields for the Consortium. Mashreq’s Investment Banking arm facilitated the transaction closure between the parties.
