Lesaka TechnologiesLesaka, the NASDAQ-listed fintech company with a market capitalization of R4.5 billion ($242 million), is acquiring payments platform Adumo for R1.59 billion ($85 million) in cash and stock. The deal is expected to close in the third quarter of 2024 and will expand Lesaka’s payments footprint in the Southern Africa region to five countries.
Founded in 2019, Cape Town-based Adumo provides card-acquiring point-of-sale terminals, integrated payment and reconciliation services to merchants and consumers. The company claims to process more than R24 billion ($1.3 billion) annually and has 23,000 merchants and 240,000 consumers using its services, respectively.
Lesaka currently owns EasyPay, South Africa’s largest non-bank-owned payment switcher, and Kazang, a popular card-acquiring point-of-sale terminal company. The combination of these services will allow the company to capture significant market share in the Southern African region, where competing startups like YOCO are still only based in South Africa. South Africa.
In February, Lesaka acquired Touchsides, a data analytics and merchant services company with more than 10,000 point-of-sale terminals in South Africa, for an undisclosed sum. Touchsides was previously owned by international beverage giant Heineken.
According to Lesaka, the acquisition will enable the company to reach 1.7 million active consumers and 119,000 merchants in South Africa, Namibia, Botswana, Zambia and Kenya. “This acquisition strengthens Lesaka’s position as a natural consolidator of Southern African Fintech and will further enhance our strengths in the consumer and merchant markets,” the company said in a statement.