Arcapita Group Holdings, an alternative investment firm, and Dgpays, a financial infrastructure technology provider, have formed a consortium to acquire a majority stake in Neopay, a fast-growing UAE-based payment solutions provider.

Neopay, originally established as a strategic division within Mashreq, has expanded rapidly, becoming a key player in the UAE’s digital payments sector.

The acquisition positions the payment solutions provider to accelerate its growth, benefiting from Dgpays’ advanced financial technology and Arcapita’s investment expertise

Mashreq will retain a significant minority stake in the company. The transaction values Neopay at approximately $385m, with closing pending regulatory approvals.

Neopay well well-positioned to capitalise on the shift towards digital payments

Arcapita’s CEO Atif A. Abdulmalik emphasised that Neopay’s growth aligns with the firm’s investment strategy, which focuses on market leaders poised to benefit from macroeconomic trends, including the UAE’s ongoing digital transformation.

Dgpays’ CEO Serkan Omerbeyoglu highlighted the company’s focus on digital transformation, saying, “With Dgpays’ fintech solutions, we aim to unlock new growth opportunities and further expand Neopay’s presence across the Middle East.”

Ahmed Abdelaal, group CEO of Mashreq, welcomed the partnership, expressing confidence in the payment solutions provider’s continued regional expansion and market leadership under its new stakeholders.

Neopay CEO Vibhor Mundhada expressed excitement about the next phase of growth, citing the consortium’s backing as pivotal in advancing digital payments and e-commerce in the region.

Goldman Sachs International served as financial advisor to Mashreq, while deNovo Partners advised the consortium.

Clifford Chance and Freshfields provided legal counsel for Mashreq and the consortium, respectively.