MFS Africa, Africa’s largest digital payments network, has reached an agreement to buy Oklahoma US-based Global Technology Partners (GTP), a top prepaid card processor in Africa.
MFS Africa disclosed the acquisition plan on Tuesday in a statement obtained by Finance Magnates.
According to media reports, the deal is worth $34 million. Financial Times reports that MFS Africa paid $34m for GTP in a combination of cash and shares.
The payment network said the acquisition will enable it “to further deepen its offering to Africa’s gig economy, the business travel market and the millions who eagerly want to participate in the global digital commerce through card credentials linked to mobile money wallets, rather than bank accounts, for seamless and secure online purchases.”
Additionally, MFS Africa noted that the acquisition will expand its bank and fintech base and provide tokenization for the mobile money world in connection with the traditional card scheme ecosystems, such as Visa and Mastercard.
Once the deal is concluded, MFS Africa plans to further invest in GTP’s current card programmes with banks.
In addition, it wants to “bring to these all the innovations and possibilities offered by the MFS Africa HUB, including seamless interoperability with mobile money.”
“The company will also leverage GTP's stack to fast-track card programmes for MNOs and fintechs across Africa,” MSF Africa said in the statement.
“Lastly, MFS Africa intends to leverage GTP's presence in the USA to expand its commercial activities in North America,” it added.
‘Momentous Milestone’
Speaking on the acquisition, Dare Okoudjou, the Founder and CEO of MFS Africa, noted that the company is “now truly an omnichannel payments company.”
Okoudjou explained that GTP’s expertise will enable the company to extend its value proposition of last-mile connectivity to African banks.
He added that the payments network will be able to accelerate its offering of card connectivity to mobile money users and other fintech companies operating across the continent.
“This is a momentous milestone for us and Africa's tech ecosystem on many levels. It’s something of a first for an African tech company to acquire a US tech company of GTP’s size and stature, and we’re delighted to be welcoming the GTP team to the MFS Africa family,” Okoudjou said in the statement.
On his part, Robert Merrick, the Founder and Chairman of GTP, who described MFS Africa as “an ideal home for GTP,” noted that the US company is focused on adding new features and functionalities to its platform.
Furthermore, he said the company was putting its efforts into signing up new clients and expanding into new countries.
“GTP’s established position as Africa’s number one prepaid card processor has been built on its unique, flexible platform that actively helps prepaid cards to succeed,” Merrick said.
“We have become the leader of prepaid cards in Africa because of our people, who have genuine in-depth knowledge not only of the prepaid card business but also of the realities that African card users face,” he added.
