Nasdaq and JSE-listed Lesaka Technologies, which provides financial services to underserved consumers and merchants, said yesterday it has completed the R1.67 billion cash and share acquisition of Adumo RF, which it says should cement its position as “the leading independent fintech in Southern Africa”.
The transaction, first announced in May, was settled through the issue of 17.28 million Lesaka shares and R232.2 million cash, implying a total purchase price of R1.67bn using Lesaka’s October 1, 2024, closing price on the JSE of R83.05 a share. Shares were unchanged yesterday afternoon.
“The Adumo transaction…significantly enhances our technology platform, adding customers, solutions, and meaningful scale. Lesaka’s full-service fintech platform will serve 1.7 million active consumers, 120 000 merchants, and process over R270bn in throughput per year in our connected ecosystem as we facilitate the digitization of commerce in our markets,” Lincoln Mall, Lesaka Southern Africa CEO said in a statement.
Adumo is a leading independent payments processor with over 20 years’ experience in payment solutions in South Africa. Lesaka said the deal reinforced its position as a natural consolidator of Southern African fintech. Adumo serves about 23 000 active merchants with operations across South Africa, Namibia, Botswana and Kenya.
The acquisition enhanced Lesaka’s balance sheet in both its consumer and merchant markets and followed the successful integration of the Connect and Kazang businesses and the recent acquisition of Touchsides.
“The group will have over 3 300 employees operating on the ground in 5 countries: South Africa, Namibia, Botswana, Zambia, and Kenya,” said Mall.
Adumo CE Paul Kent would take responsibility for Lesaka’s merchant pillar. Crossfin CE Dean Sparrow joined Lesaka’s board as a non-executive director. The deal also brought new shareholders to Lesaka, Apis Growth Fund I and African Rainbow Capital.
“Our businesses are a natural fit with the combined solution set, distribution network and technologies positioning us perfectly to take advantage of the digitization across our economy,” said Adumo CEO Paul Kent.
“This is an exciting day for us and for the customers that we serve. Bringing the Adumo business into the fold is a landmark transaction for Lesaka. The acquisition materially broadens our product offering to our customers and deepens our penetrations in both the merchant and consumer segments. This will accelerate our growth profile,” said Steve Heilbron, Lesaka’s head of corporate development.
To fulfil one of the terms of the deal, Lesaka will purchase 2.6 million of its shares, through a wholly-owned subsidiary, for R207.2m, or R79.66 per share, to provide cash liquidity to a group of indirect Adumo shareholders who were unable to receive Lesaka shares under their investment mandates. This purchase was expected to complete in early October 2024.
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