Canada’s Brookfield Asset Management said it would buy payments provider Network International for 2.2 billion pounds ($2.76 billion) in cash, according to media reports.
Network International operates through two business sections, a merchant services segment that provides payment gateways for online merchants and an outsourced payment services division, where issuer processing brings in the bulk of revenue.
The Canadian company has more than $5 billion in assets under management in the Middle East. The deal main goal is to expand its payments business in the Middle East and Africa.
“The 400 pence-per-share offer represents a premium of about 64% to United Arab Emirates-based Network International’s closing price on April 12, the last business day prior to the start of the offer period,” Reuters reported.
“This combination would potentially create a key platform in the attractive MEA payments space,” the company said in a statement.
The Canadian firm said Network directors intended to unanimously recommend that shareholders vote for the deal.
Last year, Brookfield has also bought a 60% stake in Magnati, the payments business of First Abu Dhabi Bank.
Meanwhile, First Abu Dhabi Bank, the United Arab Emirates’ largest lender, said it would co-invest with Brookfield in the Network acquisition.
Brookfield said the deal would be financed by a combination of equity investment, as part of which Brookfield Business Partners expects to invest up to about US$150 million.
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