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South African fintech Lesaka snaps up Adumo in $86m deal

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Lesaka Technologies, a fintech company based in South Africa, has entered into a definitive agreement to acquire Adumo, a fellow South Africa-based paytech firm, in a deal valued at approximately $85.9 million.

The agreement is pending shareholder and regulatory approvals and 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 shareholders. The funding for the cash component will come from both external financing and internal cash resources.

Adumo’s principal shareholders include Apis Growth Fund I, a private equity fund managed by UK-based VC Apis Partners, and African Rainbow Capital (ARC), a South African investment firm. Founded in 2009 and headquartered in Bryanston, South Africa, Adumo is recognized as the largest provider of point-of-sale (POS) and Software-as-a-Service (SaaS) solutions in the country’s hospitality sector. Specializing in integrated payments, reconciliation services, and card acquiring, Adumo serves around 23,000 merchants and supports over 245,000 cardholders through its corporate card offering.

Lesaka, a provider of B2B and B2C financial services to South African consumers and businesses, believes that the acquisition will strengthen its position as a leading consolidator in the Southern African fintech market and enhance its capabilities in both consumer and merchant sectors. Following the acquisition, Lesaka expects its solutions ecosystem to serve more than 119,000 merchants and 1.7 million consumers, processing over $13 billion in throughput annually. Furthermore, the company plans to expand its operations to include Kenya, Botswana, Namibia, and Zambia, in addition to its primary market of South Africa, with a combined workforce of over 3,300 employees.

The deal is projected to be finalized in the third quarter of 2024, according to Lesaka.

Source: fintechfutures.com

The post South African fintech Lesaka snaps up Adumo in $86m deal appeared first on HIPTHER Alerts.

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