The deal is being structured as a merger between the two, and follows the recent investment in the DPO Group by Apis Growth Fund I, a private equity fund managed by Apis Partners LLP, a private equity asset manager focused on financial services in the growth markets of Africa and Asia.
PayGate was founded in 1999 and has more than 15 years of experience in providing payment processing and merchant services throughout Southern Africa. The Company enables quick, secure online payments through a wide variety of payment solutions, and supports a large array of digital payment methods.
PayGate has expanded aggressively into the rest of Africa and currently offers online acquiring in 24 African countries. As with the DPO Group, PayGate holds PCI DSS Level 1 Certification, the highest security certification in the payment cards industry.
DPO was formerly known as 3G Direct Pay. The combination of 3G Direct Pay and PayGate under the DPO Group will provide a single contact point for merchants looking to accept online payments across the continent. Merchants will have access to more than 60 DPO employees across the continent to provide development solutions and customer support in local languages.
“The merger is a landmark transaction for PayGate and a reward for our dedication to building the best-in-class platform and maintaining excellent customer service for our merchants,” said Peter Harvey, Managing Director of PayGate. “This is also an incredible opportunity to support our clients’ expansion across the African continent through additional on-the-ground coverage across the Group’s countries of operation.”
“The PayGate team has grown a fantastic business, centred on providing the best online payments processing solution to its merchants,” said Eran Feinstein, the DPO Group CEO. “This merger allows the DPO Group to build a pan-African payments platform with a presence across eight countries and processing ability in a further 24 countries. Together, the Group will accelerate the growth of online payments in Africa, as we seek to empower every person and organization to have the option to pay and be paid online anywhere, anytime, and by any mode of payment.”
Offer Gat, DPO Group Chairman, said: “The merger with PayGate enables the DPO Group to offer a wider range of products and services across the whole of East and Southern Africa, and provides the Group with a strong foothold in the large South African e-commerce market. The Group will be in a better position to serve the growing number of African and global multinationals looking to serve consumers anywhere on the African continent.”
Following the transaction, Peter Harvey will continue to lead the DPO Group’s activities in the South Africa Common Monetary Area, and will work closely with Eran Feinstein to grow the Group’s business in its current markets and in new regions over the coming years.