Nasdaq-listed fintech Lesaka Technologies has completed the acquisition of fintech company Adumo for $96 million. In the cash and stock deal, Lesaka paid $13 million in cash. The final acquisition amount is $10 million more than the figure previously reported in May thanks to a 27% increase in Lesaka’s share price.
“We are thrilled to be joining the Lesaka group, creating a Southern African fintech of significant scale, with leading positions in several verticals and sectors,” said Adumo CEO Paul Kent.
Lesaka shareholders and South Africa’s Competition Commission approved the deal in September 2024.
Adumo’s acquisition will help Lesaka reach 1.7 million active consumers and 120,000 merchants. The company will also hire 3,300 employees in South Africa, Namibia, Botswana, Zambia, and Kenya.
It will increase Lesaka’s market share in the southern African region. Competitors like YOCO are only based in South Africa.
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, with a market capitalisation of $310 million, also owns payment provider EasyPay, and Kazang, a card-acquiring POS device company. In February 2024, the company acquired point-of-sale provider Touchsides for an undisclosed amount.
Lesaka is looking to make more acquisitions and already has “several potential targets” to drive its growth. In its latest financial results released in August, Lesaka recorded an 11% jump in revenue to R10.6 billion and a net loss of R326 million for the financial ended June 2024.
