Network International and Mastercard will also team up to support the development of electronic payments in the Middle East and Africa
UAE-based payments solutions company Network International and Mastercard have signed an agreement for the US financial services firm to make a $300 million cornerstone investment in Network International’s planned London IPO, the companies announced on Tuesday.
As part of the agreement, the companies have also entered a ‘strategic partnership’ to support the development of electronic payments in Africa and the Middle East.
Mastercard will pay, or invest through, Network International to develop and deliver innovation to expand product areas and drive further digital adoption in these regions.
The two firms will also establish shared development products and cross-referral arrangements for products for financial institutions and merchants, including cyber and intelligence tools and tokenisation solutions.
In a statement, Mastarcard said that the investment will be based on the same terms as the institutional investors involved in the IPO, subject to a 9.99 percent ownership limitation, a 24-month lock-up period and a 36-month standstill not to acquire additional shares without approval from Network International’s board.
“I am delighted that Network International has agreed to enter into a strategic partnership with Mastercard,” said Network International CEO Simon Haslam.
“Today’s announcement will see both parties working on joint development projects and cross-referral arrangements to drive card penetration, usage, and acceptance in the MEA region,” he added. “In addition, it will also enable us to develop and offer new value-added solutions for our clients through our scalable and secure pan-regional technology platforms.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.