Dubai, UAE – The Consortium of Arcapita Group Holdings Limited, a global alternative investment firm, and Dgpays, a leading financial infrastructure technology provider in the EMEA region, has reached an agreement with Mashreq, one of the UAE’s prominent financial institutions, to acquire a majority stake in NEOPAY, the UAE’s fast-growing payment solutions provider. Mashreq will maintain a significant minority interest in the company. This acquisition values NEOPAY at approximately $385 million, pending necessary regulatory approvals.
The acquisition is a pivotal step for NEOPAY as it aims to enhance its presence in the rapidly expanding digital payments sector in the Middle East. The Consortium’s strategic support positions NEOPAY to accelerate growth and introduce new services, utilizing Dgpays’ advanced technology.
NEOPAY has established itself as the UAE’s fastest-growing payment solutions provider, serving a diverse clientele in sectors such as retail, hospitality, government, and e-commerce. With the UAE’s card transaction value expected to grow at double-digit rates over the next five years, NEOPAY has ample opportunities to capture additional market share.
Founded as a division within Mashreq, NEOPAY has witnessed significant growth, driven by the UAE’s dynamic economic landscape characterized by a young, digitally savvy population, strong GDP growth, and government initiatives promoting a cashless economy.
Atif A. Abdulmalik, CEO of Arcapita, emphasized that NEOPAY aligns with their investment strategy, which focuses on acquiring market leaders with strong growth potential. He expressed confidence that NEOPAY is well-positioned to benefit from the UAE’s shift toward digital payments.
Serkan Omerbeyoglu, CEO of Dgpays, expressed excitement about partnering with NEOPAY, highlighting the potential for expansion across the broader Middle East region through innovative technology and strategic collaborations.
Ahmed Abdelaal, Group CEO of Mashreq, stated that this transaction marks a significant milestone in NEOPAY’s journey, allowing it to continue its growth as a regional leader in digital payments. He expressed confidence in the expertise and vision of Arcapita and Dgpays to support NEOPAY’s ambitious expansion plans.
Vibhor Mundhada, CEO of NEOPAY, shared enthusiasm for the partnership, noting that it will enable NEOPAY to accelerate its growth in the UAE and expand its footprint across the Middle East.
This acquisition highlights a strategic collaboration among Arcapita, Dgpays, and Mashreq, showcasing 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 served as legal counsel for Mashreq, and Freshfields was legal counsel for the Consortium. Mashreq’s Investment Banking arm facilitated the closure of the transaction.
