By: Bernd Debusmann Jr / Arabian Business
Network International and Mastercard will also team up to support the development of electronic payments in the Middle East and Africa
UAE-based payments solutions company Network International and Mastercard have signed an agreement for the US financial services firm to make a $300 million cornerstone investment in Network International’s planned London IPO, the companies announced on Tuesday.
As part of the agreement, the companies have also entered a ‘strategic partnership’ to support the development of electronic payments in Africa and the Middle East.
Mastercard will pay, or invest through, Network International to develop and deliver innovation to expand product areas and drive further digital adoption in these regions.
The two firms will also establish shared development products and cross-referral arrangements for products for financial institutions and merchants, including cyber and intelligence tools and tokenisation solutions.
In a statement, Mastercard said that the investment will be based on the same terms as the institutional investors involved in the IPO, subject to a 9.99 percent ownership limitation, a 24-month lock-up period and a 36-month standstill not to acquire additional shares without approval from Network International’s board.