CVC Consortium Eyes Takeover of $2 Billion Payments Firm Network

A private equity consortium backed by CVC Capital Partners is in talks about a potential acquisition of Middle Eastern credit card processor Network International Holdings Plc.

(Bloomberg) — A private equity consortium backed by CVC Capital Partners is in talks about a potential acquisition of Middle Eastern credit card processor Network International Holdings Plc.

The investor group, which also includes tech-focused buyout firm Francisco Partners, has made a preliminary proposal to take Network private, according to a statement Thursday confirming an earlier Bloomberg News report.

Network has been speaking with advisers after attracting takeover interest from CVC, people with knowledge of the matter said earlier. Shares of the company were up 25% at 2:14 p.m. Thursday in London, giving Network a market value of £1.6 billion ($2 billion) and putting it on track for the biggest daily gain since November 2020.

Discussions are ongoing, and there’s no certainty they will lead to a deal, Network said in the statement. The consortium has until 5 p.m. on May 11 to announce whether it plans to make a formal offer.

Activity has been heating up in the Middle Eastern payments industry. Last year, Brookfield Business Partners LP bought control of First Abu Dhabi Bank PJSC’s Magnati unit in a deal valuing the operation at as much as $1.15 billion. Dubai-based lender Mashreqbank PSC has also been pursuing a sale of its payments business, Bloomberg News has reported.

(Updates with share reaction in third paragraph.)

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