Dubai, UAE, 23 September, 2024 – Arcapita Group Holdings Limited (“Arcapita”), the global alternative investment firm, and Dgpays, a leading financial infrastructure technology provider in the EMEA region, (together in equal partnership, the “Consortium”) and Mashreq, one of the UAE’s leading financial institutions, jointly announced today the Consortium’s agreement to acquire a majority stake in NEOPAY, the UAE’s fast-growing payment solutions provider, while Mashreq retains a significant minority interest. The transaction implies an approximate enterprise value for NEOPAY of $385 million, and the closing is subject to necessary regulatory approvals.
The acquisition represents a significant milestone for NEOPAY as it aims to expand its presence in the rapidly growing digital payments sector in the Middle East. The strategic support of the Consortium, positions NEOPAY to further accelerate its growth trajectory and offer new services, leveraging Dgpays’ cutting-edge technology.
NEOPAY is the UAE’s fastest growing payment solutions provider, with a strong foothold among merchants and e-commerce players. The UAE’s card transaction value is expected to grow at double-digit rates over the next five years, presenting substantial opportunities for NEOPAY to capture further market share.
Founded as a strategic division within Mashreq, NEOPAY experienced significant growth in recent years, serving a diverse client base across key sectors such as retail, hospitality, government, and e-commerce. NEOPAY’s expansion is driven by the UAE’s dynamic economic landscape, which is characterized by a young, digitally literate population, robust GDP growth, and the government’s ongoing initiatives to promote digital transformation and a cashless economy.
Serkan Omerbeyoglu, CEO of Dgpays, said, “We are excited to support NEOPAY’s transformative journey in partnership with Mashreq. NEOPAY has demonstrated exceptional growth and innovation in the UAE’s digital payments landscape, and we see tremendous potential in expanding this success across the broader Middle East region. At Dgpays, our mission has always been to drive digital transformation in financial services through cutting-edge technology and strategic partnerships. 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.”
Atif A. Abdulmalik, CEO of Arcapita, commented: “NEOPAY is fully aligned with Arcapita’s investment strategy which focuses on acquiring companies that are not only market leaders but also have strong growth potential driven by favorable macroeconomic trends. NEOPAY is well-positioned to benefit from the UAE’s ongoing shift towards digital payments, supported by rising GDP, a tech-savvy young population, and government-led initiatives for digital transformation. Arcapita will support the next phase of NEOPAY’s growth into value-added services and new markets.”
Ahmed Abdelaal, Group CEO, Mashreq, said: “This transaction is a key milestone in NEOPAY’s journey, allowing it to continue its strong growth trajectory as a regional leader in digital payments. We are confident that Arcapita and Dgpays have the right expertise and vision to help NEOPAY achieve its ambitious expansion plans across the Middle East. While Mashreq retains a significant stake in NEOPAY, we are excited to see the company reach new heights as it scales its operations and reinforces its market leadership.”
Vibhor Mundhada, CEO of NEOPAY, also said, “We are thrilled to embark on the next chapter of NEOPAY’s growth with the support of Arcapita and Dgpays. 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. We remain committed to advancing e-commerce payments and driving the broader adoption of digital payments across the region.”
This acquisition signifies a strategic alignment between Arcapita, Dgpays, and Mashreq, highlighting a shared commitment to driving innovation and growth in the digital payments industry throughout the Middle East.
Goldman Sachs International, DIFC Branch acted as financial advisor to the seller, while deNovo Partners advised the Consortium. Clifford Chance acted as legal counsel to Mashreq while Freshfields was legal counsel to the Consortium. Mashreq’s Investment Banking arm facilitated the closure of the transaction between the parties.
Notes to Editors
About Arcapita
Arcapita Group Holdings Limited is a premier alternative asset manager with a total transaction value in excess of $30 billion. The firm’s principled approach provides a strong, ethical compass that fosters trust, excellence and partnership with stakeholders. With over 25 years of management expertise, aligning Arcapita Group’s interests with that of our clients, we conduct business in a fair and transparent manner. Arcapita Group has offices in the US, UK, Saudi Arabia, Singapore and an affiliated office in Bahrain giving us a unique vantage point to understand tomorrow’s evolving investment landscape. www.arcapita.com
About Dgpays
Dgpays, headquartered in Turkey with offices in Dubai, and Tashkent, is a leading financial technology infrastructure company in the EMEA region, working with fintechs, non-financial institutions, banks, mobile network operators, and government entities like transportation authorities. With an IT/R&D team of over 600, Dgpays offers a wide range of in-house developed financial technology solutions, including payments and processing services, core banking, cards, ATMs, POS, digital SME packages, and e-wallets through a customizable micro-services architecture. As a strategic technology provider with over 50 enterprise clients, including major banks, telecom operators, and government authorities in Turkey and beyond, Dgpays is also a licensed payment, e-money, and consumer financing institution. In addition, Dgpays owns the one of the largest independent loyalty platforms in Turkey and it is backed by shareholders such as EBRD, Truffle Capital, İşbank, Dogus Group, and Endeavor Catalyst Fund. https://www.dgpays.com/
About Mashreq
Mashreq is almost a half-century old, yet proudly thinks like a challenger, startup, and innovator. Mashreq pioneered key innovations and developments in banking, starting with entry-level digital-first customers all the way to powering some of the regions most prominent corporations and wealth accounts.
The banks mandate is to help customers find their way to Rise Every Day, partnering through the highs and lows to help them achieve their goals and unlock their vision of success.
Reassuringly present in major financial centres of the world, Mashreq’s home and global HQ remains in the Middle East, offering services whenever and wherever opportunity takes its customers. Mashreq has been recognized as the fastest-growing Middle East brand, by Banking 500 rankings for 2024 by Brand Finance.
Find your way to Rise Every Day at: www.Mashreq.com/RiseEveryDay
About NEOPAY
NEOPAY, the payments subsidiary of Mashreq, is the digital payments enabler of choice in the region. NEOPAY provides market leading merchant acquiring services, payment processing solutions as well as a host of value added services like integrated wallets, SaaS based solutions, BNPL, data analytics etc. With a total annual processed payment volume of over USD 30 Billion, NEOPAY has pioneered key innovations in the payments space in the region.
You can know more about how NEOPAY is adding value to its customers at www.neopay.ae
