We are pleased to announce that Apis Growth Fund I’s (AGFI) investee company DPO Group (DPO), one of the leading, high-growth online commerce platforms in Africa operating across 19 countries, has today entered into an agreement to be acquired by Network International (NI), a leading enabler of digital commerce across the Middle East and Africa (MEA). See the official press release below.
DPO Group to be acquired by Network International in landmark deal for African payments space
DPO Group, one of the leading, high-growth online commerce platform in Africa, will support the expansion of Network International’s presence across Africa, one of the most under penetrated and fast growing payments markets in the world.
Ireland, Kenya, South Africa, 29 July 2020: DPO Group (DPO), one of the leading, high-growth online commerce platforms in Africa operating across 19 countries, has today entered into an agreement to be acquired by Network International, a leading enabler of digital commerce across the Middle East and Africa (MEA). In a landmark deal for the African payments space, Network International will be acquiring 100% of DPO Group, which will continue to operate under the same brand.
Headquartered in Dubai and listed on the London Stock Exchange, Network International is a leading pan-regional provider of digital payment solutions, with presence across the entire payments value chain, delivering integrated omnichannel payments services to its customers. The acquisition of DPO Group will support Network International’s capabilities in Africa across online, mobile and alternative payments as well as providing merchant and MNO relationships and increasing the cross-selling opportunities to both DPO and Network International’s customers.
DPO Group is already a high growth business, with revenue CAGR of c.40% from 2017-2019. This transaction enables DPO to add point of sale payment solutions to its product portfolio, connecting DPO to acquirers and issuers across the African continent and enabling DPO to penetrate the Middle East market for the first time.
Eran Feinstein, CEO of DPO Group commented on the deal, “This deal represents a significant milestone for the pan-African payments landscape and the customers and businesses we serve. Combining the two will allow us to broaden our offering for new and existing customers, significantly improving Africa’s merchants’ capacity to do business not only across the continent but in the Middle East as well as globally.”
Simon Haslam, Network International’s Chief Executive Officer, said: “We are excited by this acquisition which will strengthen our strategic framework by combining both of our businesses’ activities across the African market. This deal will also enhance our offering in the payments value chain by presence on both sides of the transaction, acquiring and issuing, and accelerate our future growth. Together, we have a powerful combination to accelerate digital payments across our regions and offer a one-stop shop solution for merchants, with multiple payment acceptance methods.”
Offer Gat, DPO Group Co-Founder and Chairman said: “We are delighted to have worked with Apis Partners in growing the DPO Group into one of the leading pan-African payments companies. We havefound Apis’ financial services sector expertise invaluable as we scaled DPO from a regional player to a truly pan-African platform present in 19 countries and serving both blue chip and local merchants. Apis supported DPO throughout as we made 5 major acquisitions in four years, entered new markets, and launched innovative new products across the continent. We are looking forward to working with our new shareholder, Network International to achieve similar success over the coming years”
Matteo Stefanel, Managing Partner and Apis Co-Founder said: “Eran and Offer are outstanding and visionary entrepreneurs who have built DPO into a truly world class business in a very short period of time. They exemplify the type of dynamic management teams Apis looks to invest in, and we are very proud to have worked with them and to have been part of the DPO journey. As they embark on the next phase of their journey as part of Network International, I am confident that Eran, Offer and the rest of the DPO team will continue leading the way in the African payments sector.”
Udayan Goyal, Managing Partner and Apis Co-Founder said: “Africa represents one of the fastest growing and most under-penetrated markets for online payments in the world. Our investment in the DPO Group was a recognition of this fact and the company’s subsequent rapid growth and ultimate acquisition by Network International speaks to the enormous opportunity within payments across Africa. We believe the combination of DPO Group with Network International will create tremendous value for both businesses as they continue to deliver world-class solutions across African markets”
DPO Group will retain its executive team and employees, as it continues to expand and will drive the payments agenda of the larger group within the African continent and the Middle East. The acquisition will also see DPO Group’s shareholders and executives become key stakeholders in Network International.
Morgan Stanley acted as the financial advisor to DPO and ENS Africa acted as the legal advisor. The deal is expected to close by the end of 2020, subject to customary closing conditions including regulatory and anti-trust.
About DPO Group
DPO Group is a leading African payment service provider (PSP) which has developed the technology to enable businesses and individuals across the continent to make payments online and offline with all currencies and payment methods. DPO Group currently works with over 47,000 active merchants, including airlines, hotels, restaurants and travel agents as well as eCommerce all over Africa. The company was founded in 2006 and since then it has grown to be a pan-African PSP with more than 350 employees and a presence in 19 African countries. By providing its merchants of all sizes with the capacity to make and accept payments effortlessly, DPO supports financial inclusion and economic development on the continent.
DPO operates in the following countries: Kenya, Uganda, Tanzania, Zambia, Rwanda, Ethiopia, Zimbabwe, South Africa, Namibia, Botswana, Lesotho, Eswatini, Malawi, Mauritius, Ghana, Nigeria, Cote D’Ivoire, DR Congo, Senegal. www.dpogroup.com
About Network International
Network International comprises of a group of companies and is a leading enabler of digital commerce across the Middle East and Africa (MEA) region, providing a full suite of technology-enabled payments solutions to merchants and financial institutions of all types and sizes, including acquiring and processing services and a comprehensive ever-evolving range of value-added services.
Network International Holdings Plc is the holding company for Network International and the group companies.
About Apis Partners LLP
Apis Partners LLP (www.apis.pe) is a private equity asset manager that supports growth stage financial services and financial infrastructure businesses by providing them with catalytic growth equity capital.
Apis Partners LLP, through its team of 26 professionals with deep industry expertise, manages total committed capital from investors (including drawn and invested capital) of ca. US$ 1bn for investments in financial services and technology.
Apis Partners LLP is highly conscious of the developmental impact that the provision of growth capital for financial services in growth markets can achieve, and as such, financial inclusion is a core tenet of Apis Partners LLP’s approach and investment mandate.
DPO Group enquiries:
Janet Ndugire, Gong Communications
Media DPO Group enquiries South Africa only:
Elzaan Rohde, Semaphore Communications
E: firstname.lastname@example.org M: +27 (0) 83 256 1493
Network International media enquiries:
Finsbury – Public Relations Adviser
James Leviton and Rob Allen