MFS Africa to acquire US company GTP for $34 million

Africa’s largest fintech interoperability hub, MFS Africa, will acquire US-based payments software company Global Technology Partners (GTP) in a $34 million deal.

We often hear about African companies acquiring other African companies, or foreign companies acquiring African companies. However, we rarely hear of African companies acquiring foreign companies.

Well, just like Egypt-born Swvl’s acquisition of Volt Lines and Zeelo, another African company is crossing continental borders for acquisition.

What MFS achieves with this agreement

MFS Africa is the largest fintech interoperability hub in Africa. With over 320 million customers, it connects banks, telcos and money transfer operators in over 35 countries through a single integration point.

GTP, on the other hand, is a prepaid and mobile payment platform that integrates multiple prepaid cards with a single bank account and allows users to make purchases online. More than 500,000 users in 30 countries use the GTP platform.

The acquisition of GTP by MFS Africa will offer 2 things to MFS Africa: the fintech will be able to offer its users prepaid cards, and the agreement will see the fintech expand into the United States.

According to MFS Africa CEO, Dare Okoudjou, “It’s mainly for international e-commerce platforms, which are not able or willing to create the user experience that will accept mobile.”

MFS Africa’s acquisition strategy

The secret to MFS Africa’s growth and expansion lies in its acquisition strategy.

Although this is the fintech’s first off-continent acquisition, it has acquired 3 other African startups as part of its bid to expand its digital payments network. In 2016, MFS Africa acquired Sochitel – a company specializing in international airtime transfers to Africa – and the acquisition, according to MFS Africa, has helped create the largest transfer payment network that focuses on Africa. In 2020, the company acquired Beyonic, a Ugandan fintech providing payment management solutions to SMEs. Last year, it acquired Baxi in what has been called “Nigeria’s second largest fintech acquisition”.

All of these acquisitions have helped bring MFS Africa closer to its vision of being present in all 54 African countries and serving 500 million people and millions of MSMEs.

Its latest acquisition will help it reach millions more, according to CEO Okoudjou.

The company also announced that it has reached an agreement with Spotify that will see the music platform accept mobile money as a payment option in Kenya, Uganda and South Africa.

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