Network says talks ongoing with private equity bidders

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Network International, a Dubai-based card payment processing company, has confirmed receiving a preliminary takeover bid from a CVC Capital Partners and Francisco Partners Funds consortium.

Discussions with the consortium are ongoing, the company said in a statement published on the London Stock Exchange.

“There can be no certainty that any offer will be made, nor as to the terms on which any offer might be made,” the statement added.

Network shareholders are advised to take no action concerning the proposal, it said, adding an announcement will be made in due course.

In March, the company said is net profit rose 41.6 percent year-on-year to $80.1 million in 2022, as total revenue increased 24.5 percent to $438.4 million, led by solid performance in its merchant solutions services business.

Network International expects its share buyback programme of $100 million to complete this year.

The payment processing firm retains a positive outlook for the year, with its core markets rapidly transitioning towards digital payments at a pace significantly ahead of more developed economies. 

Network International expects revenue growth in the “high teens” for 2023 in constant currency, with pre-tax earnings slightly ahead of 2022.

Founded in 1994 as a subsidiary of Emirates NBD, the company serves over 154,000 merchants and 200 financial institutions.