Benefit, Network International sign JV
Manama, January 28, 2009
Bahrain Electronic Network for Financial Transactions (Benefit) have signed a joint venture agreement with top card payment solutions provider Network International to provide third-party ATM and card processing services for banks in Bahrain and GCC.
The deal marks the strategic alignment of two industry leaders, and is aimed at responding rapidly to GCC’s growing demand for globally proven third party card processing practices and solutions, as well as to accelerate the development of the Cards industry across the wider GCC, said a top official.
Given the impact of the JV, more than 500,000 cards will be hosted over the next five years, with revenues projected at nearly $10 million for the same period. It is expected that JV’s share of the target market will be between 8 to 10 per cent.
Abdulwahid Janahi, CEO of Benefit, who also takes over as chairman of the new entity Sinnad, said: “This alliance is a coming together of two like- minded entities with a view to provide exceptional breadth of services, supported by the depth of individual competencies.'
'This JV will allow diversification of Benefit’s portfolio while offering our customer banks globally proven third-party ATM and card processing practices.'
'The new alliance will further allow us, as one entity, to build strength upon strength, and compete more effectively in the cards market. This alliance is timely for Bahrain and the GCC countries, and a landmark achievement in many respects,' he added.
Abdulla Qassem, chairman, Network International and vice chairman of the joint venture, said: 'Partnerships are about synergies and this alliance is a clear result of two separate entities building a valuable shared platform to drive our respective and shared ambitions.'
'This is an important milestone for each, and reflects our shared commitment to strive for sustainable growth, by building an uncommon advantage.'
'The JV (S INNAD) wll deliver seamless integration and be operational from Day One, offering our new partners significant speed to market advantage. This partnership is meaningful at many levels, and we are very excited with our near and forward plans together,' he added.-TradeArabia News Service