Lesaka Technologies, the NASDAQ-listed fintech company with a market capitalisation of R4.5 billion ($242 million), is acquiring payment platform Adumo for R1.59 billion ($85 million) in cash and equity. The deal is scheduled to be completed in the third quarter of 2024 and will extend 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 reconciliations services to merchants and consumers. The company claims to process over 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 payment switch not owned by a bank and Kazang, a widely popular card-acquiring POS device company. A combination of the services will enable the company to grab a significant market share in the southern African region, where competing startups like YOCO are still only based in South Africa.
In February, Lesaka acquired Touchsides, a data analytics and merchant services company with over 10,000 point-of-sale terminals across South Africa, for an undisclosed amount. Touchsides was previously owned by international beverage giant Heineken.
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. “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.
