Digital payments group based in Dubai, Network International, is set to acquire Kenyan-based Direct Pay Online (DPO) Group for USD288 Million (approximately Ksh29 billion).
Network International, which operates in Middle East and Parts of Africa is looking to solidify its footing in the African market.
The Venture will fund the acquisition through proceeds of an equity placing representing 10 percent of the Company’s existing issued share capital, USD50 million vendor consideration shares issued to Apis Growth Fund and USD13 million consideration shares issued to the DPO co-founders. The remaining amount will be funded through existing debt facilities.
“We are excited by the proposed acquisition of DPO, the leading high-growth online commerce platform operating at scale across Africa. DPO will further consolidate our presence in Africa, strengthen our position across the entire payments value chain and accelerate our growth,” says Simon Haslam, Chief Executive Officer, Network International.
DPO Group is currently rated as the largest online payments platform in Africa, operating in 19 African countries, with the biggest market in South Africa, Kenya and Tanzania. In 2019, the group recorded revenues worth USD16 million.
The acquisition, which is expected to be completed in quarter 4 of 2020, will see DPO Co-Founders incentivised through rollover of USD13 million of their DPO ownership into Network International shares and a two year holding period after the acquisition.
DPO Group powers e-commerce and mobile money services for 47,000 merchants across high-quality brands by giving them multiple distribution channels with on the ground presence to recruit merchants.