Mastercard has acquired a minority stake, worth up to $200 million in MTN Group Fintech, the telecommunications operator’s fintech arm.
The investment gives MTN Group Fintech a valuation of US$5.29 billion on a cash- and debt-free basis.
The deal was originally announced last October, and is still subject to “customary closing conditions”.
“These agreements complement the larger commercial relationship between the group and Mastercard to support the continued development and growth of technology and infrastructure to drive financial inclusion across the African continent,” said MTN in a statement.
“This commercial relationship is a key enabler for the acceleration of our fintech business’s payments and remittance services. MTN will continue to explore opportunities for other value enhancing partnerships and investments, subject to market conditions, with strategic partners and long-term investors.”