LONDON, UK: Network International has completed the acquisition of DPO Group against the final purchase consideration of $291.3 million.
The consideration includes agreed completion adjustments, which will be satisfied through payment of a cash amount of $228.6 million with the balance through the issuance of Network International shares at a reference price of 410p, subject to escrow and lock-up conditions.
DPO Group is the largest online payments platform operating across the rapidly growing African marketplace. It operates as a payments partner for merchants across 21 African countries, enabling over 60,000 SMEs and global enterprises to accept online digital payments, including mobile money and other payment types.
DPO’s strong competitive advantage lies in their ability to act as a single partner for merchants across the continent, enabling acceptance of the widest range of payment types through their proprietary technology platform, as well as a range of other merchant payment services.
The combination brings further scale and direct-to-merchant payment services to Network across Africa, providing a strong platform for future growth in the fast growing online payments market.
DPO Group delivered 2020 Total Processed Volume (TPV) of USD 2.3 billion and revenue of USD 18.5 million. H1 2021 has continued to see strong trading, with TPV of USD 1.6 billion, +68% y/y or 47% y/y in constant FX; and revenue of USD 12.4 million, +54% y/y or +35% in constant FX. DPO’s revenue profile is typically weighted to the second half of the calendar year.
The transaction unlocks significant synergies across both companies, with Network gaining access to DPO’s innovative online payment solutions and DPO benefiting from Network’s strengths in face-to-face payments and its higher transaction authorisation rates.
In-line with the strategy to deliver revenue synergies, Network will shortly launch ‘DPO Pay’ in the UAE, a cost effective and convenient, end-to-end online payment solution for SMEs, which will include value-added services such as the ability to set up an online store in just 72 hours and host a secure, trusted payment page that is mobile optimised, enabling payment via any device.
In addition, existing Network customer TymeBank, is working closely with DPO Group in South Africa in a number of areas that includes the signing of a Payment Facilitation agreement to support TymeBank’s customers accepting payments online.
Nandan Mer, CEO of Network International, commented: “We are delighted to welcome DPO to the Network family. We are natural partners, with complementary markets and capabilities that will lead to accelerated growth.
DPO brings direct-to-merchant payment services in 21 new markets, pivots our business to the fastest growing online segment, adds technology and expertise beyond card rails and brings a substantial pool of talented colleagues who will further enhance our capabilities.
This acquisition is a significant milestone on our journey to becoming the fastest-growing and most innovative customer centric payments company in the Middle East and Africa.”
Network International Holdings PLC share price
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28 Sep, 4:35 pm GMT+1 ·Disclaimer
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