TLDR
- Nasdaq-listed fintech Lesaka Technologies acquires South African fintech Adumo for $96 million, boosting Lesaka's market presence in Southern Africa.
- The acquisition adds 1.7 million active consumers and 120,000 merchants to Lesaka, expanding its reach in multiple countries.
- Lesaka's strategic move enhances its positioning as a prominent player in the region, surpassing local competitor YOCO's operational scope.
Nasdaq-listed fintech Lesaka Technologies has completed the acquisition of South African fintech company Adumo for $96 million, in a cash and stock deal.
Lesaka paid $13 million in cash, with the final acquisition price rising by $10 million due to a 27% increase in Lesaka's share price since May. The deal was approved by Lesaka's shareholders and South Africa's Competition Commission in September 2024.
Adumo's acquisition expands Lesaka's footprint to 1.7 million active consumers and 120,000 merchants across Southern Africa. The acquisition will add 3,300 employees across South Africa, Namibia, Botswana, Zambia, and Kenya. This move positions Lesaka as a key player in the region, where competitors like YOCO operate only within South Africa.
Key Takeaways
Adumo, founded in 2019, provides card-acquiring POS devices and payment solutions to 23,000 merchants, processing over R24 billion ($1.3 billion) annually. Lesaka, with a market capitalization of $310 million, also owns payment companies EasyPay and Kazang. Lesaka continues to explore further acquisitions to drive growth, after reporting an 11% revenue increase to R10.6 billion in June 2024, alongside a net loss of R326 million.
