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Lesaka Technologies To Acquire Fintech Firm Adumo for $85 million

Lesaka Technologies, the NASDAQ-listed South African fintech company with a market capitalization of R4.5 billion ($242 million), is acquiring payment platform Adumo for R1.59 billion ($85 million) in cash and equity. The deal is subject to shareholder and regulatory clearance and scheduled to be completed in the third quarter of 2024, extending Lesaka’s payment footprint in the southern African region to five countries.

Founded in 2019, Cape Town-based Adumo provides card-acquiring POS devices, integrated payments, and reconciliation services to merchants and consumers. The company claims to process over R24 billion ($1.3 billion) annually and serves 23,000 merchants and 240,000 consumers respectively. Adumo’s ISV, also known as GAAP, is the largest POS and Software-as-a-Service solutions provider to the hospitality sector in Southern Africa.

Lesaka currently owns EasyPay, South Africa’s largest payment switch not owned by a bank, and Kazang, a widely popular card-acquiring POS device company. A combination of these services will enable the company to capture a significant market share in the southern African region, where competing startups like YOCO are still primarily based in South Africa.

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According to Lesaka, the acquisition will give the company a footprint of 1.7 million active consumers and 119,000 merchants across South Africa, Namibia, Botswana, Zambia, and Kenya, with an expected annual throughput of over $13 billion. “The acquisition reinforces Lesaka’s position as a natural consolidator of Southern African Fintech and will enhance our strengths in both the consumer and merchant markets,” the company said in a statement.

Lincoln Mali, CEO of Lesaka South Africa, added: “We are thrilled to welcome the Adumo team into the group and Adumo CEO Paul Kent onto our executive leadership team. Adumo’s customer base provides us access to more than 245,000 customers and to payment technologies that we can incorporate into our existing operations. The pending acquisition of Adumo is another significant milestone for Lesaka as we build the top fintech platform in southern Africa.”

Techrectory with Agency Report.

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