Arcapita and Dgpays Acquire Majority Stake in NEOPAY from Mashreq

In a landmark transaction, Arcapita Group Holdings Limited, a global alternative investment firm, and Dgpays, a leading financial infrastructure technology provider in the EMEA region, have jointly acquired a majority stake in NEOPAY from Mashreq. This acquisition, valued at approximately $385 million, marks a significant milestone for the UAE's fastest-growing payment solutions provider.

Mashreq, one of the UAE's leading financial institutions, will retain a significant minority interest in NEOPAY. The transaction is pending necessary regulatory approvals, but it already signals a transformative phase for NEOPAY as it aims to expand its footprint in the burgeoning digital payments sector in the Middle East.

NEOPAY has shown remarkable growth since its inception as a strategic division within Mashreq, serving diverse sectors such as retail, hospitality, government, and e-commerce. The UAE's dynamic economic landscape, characterized by a young, digitally literate population, robust GDP growth, and government initiatives promoting digital transformation and a cashless economy, has been a significant driver of NEOPAY's expansion.

Serkan Omerbeyoglu, CEO of Dgpays, expressed enthusiasm about the acquisition, stating, '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. By integrating our fintech solutions with NEOPAY's robust platform, we aim to unlock new opportunities for growth and innovation.'

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 favorable macroeconomic trends. NEOPAY is well-positioned to benefit from the UAE's ongoing shift towards digital payments, supported by rising GDP, a tech-savvy young population, and government-led initiatives for digital transformation.'

Ahmed Abdelaal, Group CEO of 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.'

Given the strategic support from Arcapita and Dgpays, NEOPAY is poised for accelerated growth, making it a compelling investment opportunity. The UAE's card transaction value is expected to grow at double-digit rates over the next five years, presenting substantial opportunities for NEOPAY to capture further market share.

In conclusion, this acquisition not only signifies a pivotal moment for NEOPAY but also highlights the robust potential of the digital payments sector in the Middle East. Investors should keep a close eye on NEOPAY's progress as it scales its operations and reinforces its market leadership. Therefore, the recommendation is to buy the instrument, given the optimistic outlook and growth potential.