- Acquisition Details:
- Lesaka Technologies, a South African fintech firm, has signed a definitive agreement to acquire fellow South Africa-based paytech Adumo.
- The deal is valued at around $85.9 million and is subject to shareholder and regulatory approvals.
- It will be settled through a combination of $12.5 million in cash and the issuance of 17,279,803 shares of Lesaka common stock to Adumo’s current “ultimate” shareholders.
- Adumo’s Profile:
- Adumo, founded in 2009 and headquartered in Bryanston, South Africa, is the largest point-of-sale (POS) and Software-as-a-Service (SaaS) solutions provider to the country’s hospitality industry.
- It specializes in integrated payments, reconciliation services, and card acquiring, serving approximately 23,000 merchants and over 245,000 cardholders.
- Strategic Rationale:
- Lesaka sees the acquisition as reinforcing its position as a natural consolidator of Southern African fintech.
- The acquisition will enhance Lesaka’s strengths in both consumer and merchant markets.
- Post-Acquisition Plans:
- Following the acquisition, Lesaka’s solutions ecosystem is expected to cater to more than 119,000 merchants and 1.7 million consumers, processing over $13 billion in throughput annually.
- The group plans to extend its operations to encompass Kenya, Botswana, Namibia, and Zambia, in addition to its initial market of South Africa, with a combined workforce exceeding 3,300 employees.
- Timeline:
- The deal is expected to be finalized in the third calendar quarter of 2024.
