Proactive Investors - Run By Investors For Investors

Mastercard pumps US$300mln into Network International ahead of IPO

The credit card giant will invest the funds at the same price as investors in the IPO
Mastercard was outbid for Aim-listed Earthport

Mastercard is to invest US$300mln in Network International ahead of its float as the land grab among payments suppliers gathers pace.

The credit card giant will invest the funds at the same price as investors in the IPO, but its holding will be capped at 9.99%, which implies a value of US$3bn on the Middle East and Africa-focused Network.

Founded 25 years ago, Network posted earnings of US$152mln on revenue of US$298mln in 2018.

Payment companies have been splurging money to build market share as the switch to cards and phones from cash reaches a tipping point.

Mastercard was recently outbid by arch rival Visa for AIM-listed Earthport, which finally agreed a 37p per share /£247mln cash offer hat was more than 400% higher than the price before the two giants started bidding.

WorldPay, meanwhile. is changing hands again with FIS buying the payments group for an enterprise value of US$43bn. That comes just a year after the former RBS division merged with Vantiv.

As well as the cornerstone investment, Mastercard and Network will form a strategic partnership to increase the use of electronic payments in Africa and the Middle East.

Mastercard will pay Network an annual fee to boost adoption of digital payments in the region.

Simon Haslam, Network’s chief executive, added Mastercard had been an important partner for Network for many years and both companies were in agreement about how to expand the card payment ecosystem. 

Network International is set to be London's largest IPO so far this year when it floats next month.


View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

Augmented Reality on phone
March 21 2019
The firm currently has around nine companies in its portfolio that are either direct investments or through its sub-fund, Suir Valley Ventures, in which it holds a 22% stake
Bloomsbury Publishing
March 19 2019
Peel Hunt expects “superior returns" from the firm’s investment in digital capacity
March 04 2019
At the Completion Contract business there have been lower volumes and the average budget per film has reduced

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use