Network International

Last updated
Network International
Company type Public
LSE:  NETW
IndustryPayments as a service
Founded1994;30 years ago (1994)
Headquarters Dubai
Key people
 Ron Kalifa
( Non-Executive Chairman )
Nandan Mer
( Chief Executive Officer )
RevenueIncrease2.svg $490.1 million (2023) [1]
Increase2.svg $111.4 million (2023) [1]
Decrease2.svg $66.5 million (2023) [1]
Website www.network.ae

Network International Holdings provides technology-enabled payments as a service to merchants and financial institutions in the Middle East and Africa. It is listed on the London Stock Exchange until it was acquired by Brookfield Asset Management in September 2024.

History

The company was founded in the United Arab Emirates as a payments subsidiary of Emirates Bank in 1994. [2] Mainly operating in the Middle East and Africa region it became the first independent vendor in the Middle East to be certified by Mastercard and Visa for payments, [3] and a member of the JCB and UnionPay card schemes. The Abraaj Group bought a 49 per cent stake in the business in 2011. [4]

In January 2017, Simon Haslam, CEO of US payments processor Elavon replaced Bhairav Trivedi as CEO. [5] Nandan Mer, Mastercard Strategy Head for International Markets, took over Simon upon the latter’s retirement in 2021. [6]

The Abraaj Group sold its stake to a joint venture between Warburg Pincus and General Atlantic in 2015. [4] [7] In a deal worth $340 million, Network acquired Emerging Markets Payments (EMP) from Actis in March 2016, [8] creating the largest payments processor in the MENA region, estimated as five times larger than CSC in Lebanon by Bhairav Trivedi, the CEO of Network at the time. It remains the largest payments processor in the region. [9]

In March 2019, Network announced its intention to float on the London Stock Exchange's main market, as well as the appointment of Ron Kalifa OBE, British payments rival Worldpay's former CEO, as Chairman. [10]

The company was the subject of an initial public offering in April 2019. [4] It was the largest float of that year until that point, listing with a valuation of £2.2 billion [11] in the premium listing segment of the Official List of the Financial Conduct Authority and trading on the Main Market of the London Stock Exchange. It also joined the FTSE 250 index of companies. [12] Network International sold 40% of its shares at the IPO. [11] In addition to this, Mastercard bought a cornerstone investment of $300 million, though the deal subject to a 9.99% limit, [13] which it stated it would invest in shared projects with Network in the MENA region as part of the deal. Mastercard is now the fourth largest shareholder in Network International after General Atlantic, Warburg Pincus and Emirates NBD. [14] While there were some concerns regarding Brexit's impact on market conditions [15] Kalifa commented that the London IPO would not be troubled by Brexit, as Network's business is not reliant on the UK-EU relationship. [16]

In September 2021, Network announced the completion of its acquisition of DPO Group for $291.3 million. DPO is the largest online payments platform operating across Africa, operating as a payments partner for merchants across 21 African countries. [17]

Brookfield Asset Management made an offer to acquire the company for £2.2 billion ($2.76 billion) in June 2023. [18] The High Court approved the transaction on 13 September 2024, allowing it to complete. [19]

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References

  1. 1 2 3 "Annual Results 2023" (PDF). Network International. Retrieved 28 March 2024.
  2. ↑ "Network International considers options for initial public offering". The National. 22 September 2015. Retrieved 17 June 2019.
  3. ↑ March 2019, 22nd. "Network International to float on London Stock Exchange". FinTech Futures. Retrieved 2019-09-05.{{cite web}}: CS1 maint: numeric names: authors list (link)
  4. 1 2 3 "Network International Sells $1.4 Billion of Stock in Europe's Biggest IPO of 2019". Bloomberg. 10 April 2019. Retrieved 17 June 2019.
  5. ↑ Espinoza, Javier (January 6, 2017). "Payments chief ousted as private equity seeks rapid growth". Financial Times.
  6. ↑ Khan, Sarmad (January 5, 2021). "Network International appoints Nandan Mer as chief executive". The National News.
  7. ↑ Goodburn, Matthew (November 26, 2015). "Warburg, General Atlantic buy Network International stake". Private equity international.
  8. ↑ "UAE's Network International in $340 million deal to buy competitor". Reuters. March 2, 2016. Retrieved 8 April 2020.
  9. ↑ "Mastercard to invest $300 million in Network International IPO". Reuters. 2019-03-26. Archived from the original on March 26, 2019. Retrieved 2019-09-05.
  10. ↑ Megaw, Nicholas (4 March 2019). "Network appoints ex-Worldpay chief as chairman ahead of IPO". Financial Times.
  11. 1 2 Booth, James (10 April 2019). "Network International valued at £2.2bn in London's largest listing of 2019". CityAM. City A.M. Retrieved 11 September 2019.
  12. ↑ Stock Exchange, London (September 11, 2019). "FTSE 250". LondonStockExchange.
  13. ↑ "Mastercard to invest $300 million in Network International IPO". Reuters. 26 March 2019. Archived from the original on March 26, 2019.
  14. ↑ Megaw, Nicholas. "Mastercard to invest $300m in Network International IPO". Financial Times.
  15. ↑ Duke, Simon (15 March 2019). "Network International set for flotation under ex-Worldpay chief". The Times.
  16. ↑ Khan, Sarmad (March 28, 2019). "Network International receives strong investor interest for planned London IPO". The National.
  17. ↑ Gulf News, Report (September 29, 2021). "Dubai's Network International completes acquisition of DPO Group". Gulf News.
  18. ↑ "Brookfield beefs up payments business with $2.76 billion Network International buyout". Reuters. 9 June 2023. Retrieved 18 March 2024.
  19. ↑ "High Court Sanctions £2.2B Deal For Network International". Law 360. 13 September 2004. Retrieved 16 September 2024.
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