Lesaka Technologies, a fintech firm listed on NASDAQ with a valuation of R4.5 billion ($242 million), is set to acquire the payment platform Adumo for R1.59 billion ($85 million) through a mix of cash and stock. The acquisition is expected to close in the third quarter of 2024, expanding Lesaka’s payment operations to a total of five countries in the southern African region.
Adumo, established in 2019 and headquartered in Cape Town, offers a range of payment solutions including card-acquiring point-of-sale (POS) devices, as well as integrated payment and reconciliation services for both merchants and consumers. The company boasts an impressive annual processing volume of over R24 billion ($1.3 billion), serving 23,000 merchants and 240,000 consumers.
Lesaka’s current portfolio includes EasyPay, the largest non-bank-owned payment switch in South Africa, and Kazang, a popular provider of card-acquiring POS devices. By integrating Adumo’s services, Lesaka aims to capture a larger market share in the southern African payment space, positioning itself ahead of regional competitors like YOCO, which currently operates solely within South Africa.
In February, Lesaka Technologies expanded its reach by acquiring Touchsides, a company specializing in data analytics and merchant services, which operates over 10,000 point-of-sale terminals throughout South Africa. The acquisition, for which the financial details were not disclosed, added a significant asset to Lesaka’s portfolio, previously held by the global beverage corporation Heineken.
Lesaka has announced that this strategic move will bolster its presence, bringing its network to 1.7 million active consumers and 119,000 merchants across South Africa, Namibia, Botswana, Zambia, and Kenya. The company emphasized that this acquisition cements its role as a key player in the consolidation of the Southern African fintech sector and will strengthen its offerings in both consumer and merchant markets, as stated in their official communication.
