Published: August 4, 2010
PE firm backs Mediterranean Smart Cards' expansion.
Actis, an emerging markets-focused private equity firm, is backing its belief that Africa is moving away from cash payment society by funding the management buy-out of an electronic payment processing company.
The firm is now the majority shareholder of Egyptian company Mediterranean Smart Cards (MSC) after it joined its management in investing in the deal. The financial terms of the transaction have not been disclosed.
The buy-out team was led by chief executive Hoda Shoukry, who says management will work with Actis to strengthen and grow the business, which currently operates in more than 20 markets. “It is rewarding to be involved in an Egyptian company that has made such great strides in Africa.”
Under the terms of the deal, Paul Edwards becomes MSC’s new chairman. He says the new ownership structure will take the company to the next phase of its expansion.
“Actis’ experience in scaling businesses in other high growth markets and its network of contacts will help accelerate growth and secure a broader base of card issuers,” he adds. “I truly believe the payments industry is the next big thing in Africa.”
The MSC buy-out follows Actis’ US$244mn investment in Egypt’s Commercial International Bank last year and underlines the firm’s continuing strength in the financial services sector as well as its on the ground expertise in Cairo.
Actis senior partner Paul Fletcher believes the payments industry in emerging markets shows the same potential as the telecoms sector did ten years ago. “It [MSC] offers a platform upon which we can build; bringing modern personal finance products to many more people and providing them with greater choice in the management of their finances.”