29th Sep 2021 09:02
(Alliance News) - Network International Holdings PLC on Wednesday updated its near- and medium-long term financial outlook as it completed the acquisition of Nairobi, Kenya-based payments firm DPO Group.
The FTSE 250-listed payment devices, online payment and prepaid cards provider said the final purchase price is USD291.3 million, including agreed completion adjustments. This will be satisfied through payment of USD228.6 million in cash with the balance through the issuance of Network International shares at a price of 410 pence each.
Network International shares were trading 0.7% higher in London on Wednesday at 361.90p each. The company has a market capitalisation of about GBP2 billion.
The company said this transaction unlocks significant synergies across both companies, with Network gaining access to DPO's innovative online payment solutions and DPO benefiting from Network's strengths in face-to-face payments and its higher transaction authorisation rates.
"This acquisition is a significant milestone on our journey to becoming the fastest-growing and most innovative customer centric payments company in the Middle East and Africa," said Network International Chief Executive Nandan Mer.
Going forward, Network International said its 2021 financial guidance remains unchanged, it still expects to see total revenue slightly higher than the USD335.4 million recorded in 2019. For 2020, the company posted revenue of USD284.8 million, so this would be an 18% increase.
Expectations for 2022 now include a forecast twelve-month contribution from the acquisition of DPO, Network International noted. It expects to achieve revenue growth of between 27% and 29% year-on-year in 2022.
Looking further ahead, the company expects further accelerating medium-long term revenue growth to over 20% year-on-year, which is ahead of its prior low-mid teens guidance.
By Evelina Grecenko; [email protected]
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