CVC-Network International Deal Reportedly Worth $2.5 Billion

CVC Capital Partners is reportedly in advanced talks to purchase Network International for at least £2 billion ($2.5 billion).

A report by Bloomberg News on Saturday (April 15) — citing sources familiar with the matter — says French private equity firm CVC is leading a consortium that also includes California-based Francisco Partners and which has made numerous offers to Network International, a Middle East payments firm.

The sources say the two sides are discussing an offer of around 380 pence per share, a 56% premium to Network’s closing price before reports of the takeover interest emerged.

As PYMNTS reported, Dubai-based Network International announced Thursday it had received a preliminary and conditional offer from CVC and Francisco Partners, dubbed “the Consortium.”

“Discussions between Network and the Consortium are ongoing,” the company said in a news release. “There can be no certainty that any offer for Network will be made, nor as to the terms on which any offer might be made.”

According to the release, the Consortium has until May 11 to announce whether it will make an offer. Network International said it issued the release in response to media speculation.

The company’s potential purchase follows several other recent developments in its history.

On Feb. 10, the payments processor joined forces with biometric technology firm PopID and retailer Carrefour to help the merchant use face recognition as payment verification method in the United Arab Emirates (UAE).

With that partnership, shoppers visiting Carrefour’s stores in Deira and Amsaf can now pay for their shopping by simply presenting payment terminals with a smile.

Also in February, the company announced that it had received the go-ahead from the Central Bank of Egypt to debut its new “direct-to-merchant” service in the country.

This service lets businesses accept electronic payments from customers online and at the point of sale (POS) via a dedicated terminal or tap-on-phone technology.

Ahmed Samir, regional managing director, acquiring, Egypt at Network International, said Egypt is an important market for his company and a potential growth accelerator for the business.

“Over the years, we have been successful in boosting the digital payments ecosystem … across many markets in Africa and the Middle East,” said Samir, adding that “we look forward to achieving the same in Egypt by serving the direct merchant acquiring space via networkpay.”