South African fintech company Lesaka Technologies, Inc. has announced a definitive agreement to acquire Adumo RF (Pty) Ltd for approximately ZAR 1.59 billion ($85.9 million).
The deal, which hinges on shareholder and regulatory approvals, is expected to close in the third quarter of 2024.
Under the terms of the agreement, the acquisition will be financed through a mix of stock and cash. Lesaka will issue 17,279,803 shares of its common stock to the ultimate shareholders of Adumo and pay an additional ZAR 232 million ($12.5 million) in cash.
The cash portion of the deal will be funded through internal resources and external financing.
Adumo, known for its substantial presence in the payment solutions sector, services about 23,000 active merchants and manages over ZAR 24 billion ($1.3 billion) in annual throughput.
Its operations span card acquiring, integrated payments, and reconciliation services, primarily serving the hospitality sector with its GAAP Point-of-Sale and Software-as-a-Service solutions.
This acquisition marks a significant expansion for Lesaka, bolstering its ecosystem to encompass 1.7 million active consumers and 119,000 merchants across five countries, including South Africa, Namibia, Botswana, Zambia, and Kenya.
The company processes over ZAR 250 billion in transactions annually, following the successful integrations of Connect, Kazang, and the recent acquisition of Touchsides.
Lesaka’s CEO for Southern Africa, Lincoln Mali, expressed enthusiasm for the integration, highlighting the strategic fit between Lesaka’s and Adumo’s technologies and customer bases.
Steve Heilbron, Head of Corporate Development at Lesaka, also emphasized the transaction’s role in enhancing Lesaka’s offerings and market disruption capabilities.
Paul Kent, Co-Founder and CEO of Adumo, and Dean Sparrow, CEO of Crossfin, both shared positive outlooks on the merger’s potential to drive growth and innovation within their sectors.
Apis Partners, represented by Co-Founders Matteo Stefanel and Udayan Goyal, remarked on their productive partnership with Adumo and anticipation for continued success under the expanded Lesaka umbrella.
