NEOPAY Agrees to Buy 65% of noon payments, Expand in Saudi Arabia and Egypt

UAE-based payments company NEOPAY has signed a definitive agreement to acquire a controlling 65% stake in noon payments, the payment gateway of e-commerce group noon, according to the Zawya website. The two parties did not disclose the financial value of the deal, which remains subject to regulatory antitrust approvals.

noon payments manages transaction processing for noon Group, and the agreement gives the acquirer a foothold in the region's digital payments market. The two companies explained that combining their operations will aim to enhance online acceptance, in-store collection, accelerate fund settlements, and expand cross-border payments.

Following the transaction, the scope of work includes three markets identified by both parties as the hub for expanding cross-border payment services: the UAE, Saudi Arabia, and Egypt. Under the agreement, noon Group will retain a minority stake in noon payments, meaning it maintains an interest in the company after transferring control to NEOPAY.

The completion of the transaction remains subject to anti-monopoly regulatory approvals, and the two companies have not set a timeline for closing. Subsequent phases are expected to clarify the nature of the integration between NEOPAY and noon payments and its impact on the group's customers across the three markets.

What do these terms mean?

Acquisition: A company buying a controlling stake in another company, giving it the right to direct its decisions and management.

Controlling stake: A percentage of a company's shares sufficient to control its decisions, usually considered to be over 50%.

Antitrust approvals: A review conducted by regulatory bodies to ensure that a merger or acquisition between two companies does not harm market competition.

Cross-border payments: The transfer of funds between parties in different countries, such as a customer in one country paying an online store located in another country.