Canada’s leading asset management firm, Brookfield Asset Management, has announced its agreement to acquire payments provider Network International for a cash offer of 2.2 billion pounds ($2.76 billion). The deal marks Brookfield’s strategic move into the fast-growing payments industry.
The cash offer, set at 400 pence per share, represents a significant premium of approximately 64 percent over Network International’s stock closing price on April 12, which was the last business day prior to the start of the offer period. This premium demonstrates Brookfield’s strong interest in acquiring the company and its confidence in the potential for future growth and value creation.
Brookfield’s offer outperformed the joint proposal from private equity firms CVC Capital and Francisco Partners, who had put forward an offer of 387 pence per share. Brookfield’s higher bid reflects its strategic vision and commitment to securing the acquisition.
To finance the deal, Brookfield plans to utilize a combination of equity investment. As part of this arrangement, Brookfield Business Partners expects to invest approximately $150 million, with the remaining balance funded through equity investment. This financing structure underscores Brookfield’s confidence in the long-term profitability and success of Network International.
The acquisition of Network International aligns with Brookfield’s broader investment strategy, which focuses on identifying promising sectors and companies poised for growth. The payments industry, in particular, has experienced significant expansion in recent years, driven by the increasing adoption of digital payment solutions and the rise of e-commerce. By entering the payments market through the acquisition of Network International, Brookfield aims to capitalize on this trend and position itself as a major player in the industry.
Network International, headquartered in the United Arab Emirates, is a leading payments provider in the Middle East and Africa region. The company offers a wide range of services, including card payment processing, merchant acquiring, and data-driven insights. With a strong presence in key emerging markets, Network International has established itself as a trusted partner for financial institutions, retailers, and other businesses.
By acquiring Network International, Brookfield gains access to a well-established network of clients and a robust infrastructure that can support future growth. The acquisition also provides an opportunity for Brookfield to leverage its global expertise and resources to further enhance Network International’s capabilities and expand its market reach.
Commenting on the acquisition, Brookfield expressed enthusiasm about the long-term prospects of Network International and the payments industry as a whole. The company believes that the increasing digitization of financial transactions and the growing demand for innovative payment solutions present significant growth opportunities. Through strategic investments and operational enhancements, Brookfield aims to position Network International as a leading player in the global payments market.
The completion of the acquisition is subject to customary regulatory approvals and the satisfaction of closing conditions. Once finalized, Brookfield will work closely with Network International’s management team to ensure a smooth transition and capitalize on synergies between the two companies.
In conclusion, Brookfield Asset Management’s acquisition of Network International for $2.76 billion represents a significant move into the payments industry. The cash offer of 400 pence per share, coupled with Brookfield’s strategic vision and commitment to growth, demonstrates its confidence in the future prospects of Network International. This acquisition positions Brookfield as a key player in the global payments market and opens doors to new opportunities for value creation and expansion in the Middle East and Africa region.
