Mashreq Completes Sale of Majority Stake in Neopay
Deal News | Jan 06, 2025 | Zawya
Mashreq Bank, a leading financial institution in the MENA region, has finalized the sale of a majority stake in Neopay, a prominent digital payments provider in the UAE. DgPays and Arcapita Group Holdings have acquired the majority stake, marking a significant strategic collaboration. Mashreq retains a minority position in Neopay, indicating its continued commitment to supporting the company's growth trajectory and innovative capabilities. This partnership is set to bolster Neopay’s ambition to expand its operations and enter new markets throughout the Middle East. The collaboration underscores a mutual commitment to enhance digital payment solutions across the region.
Sectors
- Financial Services
- Technology - Financial Infrastructure
Geography
- United Arab Emirates – Neopay is based in the UAE, which is central to this transaction involving Mashreq and the digital payments sector.
- Middle East & North Africa – Mashreq is one of the leading financial institutions in this region, and Neopay aims to expand its operations within this geography.
- EMEA – DgPays operates as a financial infrastructure provider in the EMEA region, extending the geographical relevance of the transaction.
Industry
- Financial Services – The transaction involves financial institutions and investment firms focusing on digital payment systems, which are part of the financial services sector.
- Technology - Financial Infrastructure – DgPays, a financial infrastructure technology provider, indicates the role of technology in this strategic partnership and transaction.
Financials
- $385 million – The deal value for the sale of the majority stake in Neopay.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mashreq | Selling Company (Vendor) | Company | A leading financial institution in the MENA region that sold the majority stake in Neopay but retains a minority interest. |
| Neopay | Target Company | Company | A fast-growing digital payments leader in the UAE, which is the subject of the majority stake sale. |
| DgPays | Bidding Company (Buyer) | Company | A financial infrastructure technology provider in the EMEA region that acquired a majority stake in Neopay. |
| Arcapita Group Holdings Limited | Bidding Company (Buyer) | Company | A global alternative investment firm that collaborated with DgPays to purchase a majority stake in Neopay. |
| SyndiGate Media Inc. | Other | Company | The provider of the press release distribution for the companies involved in this transaction. |