TA Associates acquires minority stake in Interswitch

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Stanley Opara

TA Associates, a global growth private equity firm, has acquired a minority interest in Interswitch, an Africa-focused integrated digital payments and commerce company.

The transaction was effected through an acquisition of interests from Helios Investment Partners in its investment holding vehicle.

Financial terms of the transaction were not disclosed, and according to a statement from Interswitch on Tuesday, Helios Investment Partners will remain the majority shareholder of Interswitch.

Founded in 2002, Interswitch is active across the entire payments value chain.

The firm, which is recognised in the payments space in Nigeria, owns and operates the country’s principal domestic debit card scheme, Verve, as well as serves as a third-party transaction processor for many of Nigeria’s big banks.

In addition, the company offered a number of business-to-business electronic payment services to public and private sector organisations and businesses, including government entities, hospitals, telecommunications companies and utilities, and also operates Quickteller, a business-to-consumer bill payments and digital commerce platform in Nigeria.

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According to the statement, Interswitch also operates in Kenya and Uganda through accretive add-on acquisitions.

The statement quoted the Founder and Managing Director of Interswitch Limited, Mitchell Elegbe, as saying, “Since our founding, we have been committed to creating social, environmental and economic value by facilitating trade through forms of exchange that are secure, convenient and consistent.

“Keeping that in mind, we believe a partnership with an experienced payments investor such as TA Associates will prove highly beneficial to our ongoing efforts of consolidating the impact of our services and increasing financial inclusion for all. We welcome TA on board and look forward to benefitting from their experience in the payments space and their valuable insight and support.”

Helios’s Co-founder and Managing Partner, Babatunde Soyoye, said, “For TA Associates to have collaborated with us on Interswitch as their first investment into Africa, given the current market context, is a testament to Interswitch’s successful growth trajectory to date, and the quality and resilience of its brand and business model.”

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