By Ketki Saxena
Investing.com -- Brookfield Asset Management (TSX:BN) has signed a deal to acquire London-listed Network International Holdings for $3.7 billion (£2.2bn). The purchase price of 400 pence per share represents a notable 64% premium over Network International's closing price on April 12.
Network International is a leading credit card processor in the Middle East and Africa, positioning Brookfield for a stronger presence in the global payments market. The acquisition is expected to close in the third quarter of 2023.
The acquisition of Network International by Brookfield Asset Management and its subsidiary, Brookfield Business (TSX:BBUC) Partners, represents a significant move towards consolidating their position within the international payments landscape. As the demand for digital payment solutions continues to grow worldwide, this deal highlights the importance of strategic acquisitions and partnerships for companies looking to strengthen their foothold in this dynamic market sector.
In addition to its strategic value, the deal demonstrates Brookfield's competitive edge over rival buyout firms such as CVC Capital Partners and Francisco Partners. This advantage stems primarily from the potential synergies between Network International and Magnati, another payment business Brookfield acquired from First Abu Dhabi Bank last year.
The combined entity is expected to benefit from increased market share, enhanced product offerings, and operational efficiencies.