Dubai – Mubasher: A consortium including Arcapita Group Holdings Limited and Dgpays agreed to acquire a majority stake in NEOPAY, the UAE’s fast-growing payment solutions provider.
Under the joint deal, Mashreq Bank will retain a significant minority interest, according to a press release.
The transaction implies an approximate enterprise value for NEOPAY of $385 million, while the closing is subject to necessary regulatory approvals.
The acquisition anchors NEOPAY’s objectives to expand its presence in the rapidly growing digital payments sector in the Middle East.
Founded as a strategic division within Mashreq, NEOPAY has witnessed growth in recent years, serving a diverse client base across key sectors, such as retail, hospitality, government, and e-commerce.
Serkan Omerbeyoglu, CEO of Dgpays, 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.”
Atif Abdulmalik, CEO of Arcapita, commented: “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.”
Vibhor Mundhada, CEO of NEOPAY, highlighted: “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 partnership of Arcapita, Dgpays, and Mashreq highlighted 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 was the legal counsel to Mashreq, while Freshfields was the legal counsel to the consortium.
Mashreq’s Investment Banking arm facilitated the closure of the transaction between the parties.
In 2023, NEOPAY and Visa joined forces to evolve payment solutions in the UAE market.
