A fintech company listed on Nasdaq, Lesaka Technologies, has successfully acquired fintech company Adumo for $96 million. The acquisition, a combination of cash and stock, involved Lesaka paying $13 million in cash. The final acquisition amount exceeded the previously reported figure in May due to a 27% increase in Lesaka’s share price.
The CEO of Adumo, Paul Kent, expressed excitement about joining the Lesaka group, stating that it creates a significant Southern African fintech entity with leading positions in various verticals and sectors.
The deal received approval from Lesaka shareholders and South Africa’s Competition Commission in September 2024.
As a result of Adumo’s acquisition, Lesaka will now have access to 1.7 million active consumers and 120,000 merchants. The company is also set to employ 3,300 individuals across South Africa, Namibia, Botswana, Zambia, and Kenya.
This acquisition will expand Lesaka’s market share in the southern African region, with competitors like YOCO being primarily based in South Africa.
Adumo, founded in 2019 and based in Cape Town, offers card-acquiring POS devices, integrated payment solutions, and reconciliation services to merchants and consumers. The company processes over R24 billion ($1.3 billion) annually and serves 23,000 merchants and 240,000 consumers.
With a market capitalization of $310 million, Lesaka also owns payment provider EasyPay and Kazang, a card-acquiring POS device company. In a previous acquisition in February 2024, the company purchased point-of-sale provider Touchsides for an undisclosed sum.
Lesaka is actively seeking further acquisitions and has identified “several potential targets” to drive its growth. The company’s latest financial results, released in August, showed an 11% increase in revenue to R10.6 billion and a net loss of R326 million for the financial year ending in June 2024.