Lesaka Technologies, a NASDAQ-listed fintech company, has signed a definitive agreement to acquire payments platform Adumo for ZAR 1.59 billion (approximately $85.9 million).
The transaction, expected to close in the third quarter of 2024, will see Lesaka issue a combination of cash and stock to acquire Adumo.
This acquisition strengthens Lesaka’s role as a major player in the Southern African fintech space. The combined entity will serve over 1.7 million active consumers and 119,000 merchants across five countries: South Africa, Namibia, Botswana, Zambia, and Kenya.
Lesaka expects the deal to increase its payment processing throughput, reaching over ZAR 250 billion annually.
Adumo brings a customer base of over 23,000 merchants and 245,000 corporate card holders to Lesaka. Adumo’s offerings include card acquiring, integrated payments, reconciliation services, and point-of-sale (POS) solutions for the hospitality sector.
Lesaka believes these capabilities will complement its existing suite of services, including EasyPay, South Africa’s largest non-bank-owned payment switch, and Kazang, a popular card-acquiring POS provider.
This deal is seen as a sign of further consolidation within the Southern African fintech sector. Lesaka’s recent acquisition of Touchsides, a data analytics and merchant services company, adds to its goal achievement.
With increased competition from regional players like YOCO, this move allows Lesaka to expand its reach and offerings across the region.
Lesaka’s leadership team is positive about the acquisition. Lincoln Mali, CEO of Lesaka Southern Africa, said the deal provides access to new customer segments and strengthens its technology offerings.
Steve Heilbron, Head of Corporate Development at Lesaka, highlighted the addition of respected shareholders and the potential to disrupt the market with a broader value proposition. Adumo executives also reiterated this, with CEO Paul Kent noting the combined value proposition and a natural fit between the two companies.
The acquisition is subject to shareholder and regulatory approvals and is expected to close in the third quarter of 2024.
