Arcapita Group Holdings and Dgpays have acquired a majority stake from Mashreq in NEOPAY, the UAE’s fast-growing payment solutions provider at an approximate enterprise value of $385 million.
Closing of the transaction is subject to necessary regulatory approvals. Mashreq will retain a significant minority interest in the company.
NEOPAY has a strong foothold among merchants and e-commerce players. The acquisition comes at a time when it is aiming to expand its presence in the rapidly growing digital payments sector in the Middle East. The strategic support of the consortium positions the company to further accelerate its growth trajectory and offer new services, leveraging Dgpays’ cutting-edge technology.
The UAE’s card transaction value is expected to grow at double-digit rates over the next five years, presenting substantial opportunities for NEOPAY.
Ahmed Abdelaal, Group CEO, Mashreq, commented: “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.”
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. It’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, added: “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 favourable macroeconomic trends.
“NEOPAY is well-positioned to benefit from the UAE’s ongoing shift towards digital payments. Arcapita will support the next phase of its growth into value-added services and new markets.”
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.
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