Lesaka Technologies, a fintech firm listed on the Nasdaq, has successfully finalized the purchase of Adumo, another fintech entity, for a total consideration of $96 million. The transaction was a combination of cash and stock, with Lesaka disbursing $13 million in cash. The acquisition price saw an increase of $10 million from the initially reported figure in May, buoyed by a 27% appreciation in the share price of Lesaka.
Adumo’s CEO, Paul Kent, expressed enthusiasm about becoming part of the Lesaka group. He highlighted the merger as a significant development for the Southern African fintech landscape, positioning the combined entity as a formidable force with leading market presence across various sectors and verticals.
The acquisition received the green light from Lesaka’s shareholders and the South African Competition Commission in September 2024. With the integration of Adumo, Lesaka is set to expand its reach to an impressive customer base, encompassing 1.7 million active consumers and 120,000 merchants.
The company’s workforce will also grow substantially, adding 3,300 employees across South Africa, Namibia, Botswana, Zambia, and Kenya. This strategic move is expected to bolster Lesaka’s market share within the southern African region, setting it apart from competitors such as YOCO, which currently operates solely in South Africa.
Adumo, established in 2019 and headquartered in Cape Town, specializes in providing merchants and consumers with card-acquiring POS devices, as well as integrated payment and reconciliation services. The company boasts an impressive transaction volume, claiming to process more than R24 billion (approximately $1.3 billion) on an annual basis. Adumo’s services are utilized by 23,000 merchants and 240,000 consumers.
Lesaka, which holds a market capitalization of $310 million, also owns EasyPay, a payment provider, and Kazang, a company that offers card-acquiring POS devices. Earlier in February 2024, Lesaka expanded its portfolio by acquiring Touchsides, a point-of-sale provider, for an undisclosed sum.
Looking ahead, Lesaka is on the hunt for further acquisitions to fuel its growth ambitions, with several potential targets already in sight. The company’s latest financial report, released in August, showed an 11% increase in revenue, reaching R10.6 billion, despite reporting a net loss of R326 million for the fiscal year ending in June 2024.
