(Sharecast News) - Payment solutions provider Network International has raised around £205m in a discounted placing to buy African online commerce platform DPO Group.
The shares were placed at 410p each, which is an 8.9% discount to the closing share price of 450p on Tuesday.
Announcing the placing and acquisition late on Tuesday, the company noted that DPO, which is being bought for $288m (£222m), is the largest online commerce platform operating at scale across Africa.
It said the deal consolidates and accelerates its presence in Africa, which is the most underpenetrated and fast growing payments market in the world. Africa is expected to represent around 40% of Network International's total revenue by 2024 versus 27% in 2019, giving the group "an evenly balanced business in Africa across merchant and issuer solutions".
The acquisition is expected to be broadly earnings per share neutral in 2022, including integration costs. But Network said there would be double-digit return on capital employed within three to four years, "and significantly higher thereafter".
Chief executive officer Simon Haslam said: "DPO will further consolidate our presence in Africa, strengthen our position across the entire payments value chain and accelerate our growth. This acquisition will widen our capabilities across online, mobile and alternative payments; bring an extensive and diverse range of direct merchant relationships to our business; and provide a wider range of solutions for our existing customers.
"Together, we have a powerful combination to accelerate digital payments across our regions and deliver significant shareholder value."
At 0900 BST, the shares were down 8.9% at 410p.
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