A South African fintech company listed on NASDAQ, Lesaka Technologies, is set to finalize its acquisition of a fintech startup called Adumo for $85 million in October 2024. This acquisition has received approval from shareholders and South Africa’s Competition Commission.
Initially announced in May of the same year, this deal will allow Lesaka to expand its consumer and SME merchant financing services into several countries including Botswana, Kenya, Namibia, South Africa, and Zambia.
With this acquisition, Lesaka will be able to offer payment processing, integrated payments, and reconciliation solutions to SME merchants in South Africa, Namibia, and Botswana. It will also pave the way for the company to enter a new market vertical, specifically the hospitality sector.
By acquiring Adumo, Lesaka anticipates reaching 1.7 million customers and engaging with 119,000 merchants in the Southern African region, a considerable increase from its current customer base of 1.5 million.
Lesaka, valued at $315 million in the market, is the owner of payment provider EasyPay and Kazang, a company specializing in card-acquiring POS devices. In a previous acquisition, the company acquired point-of-sale provider Touchsides in February.
This strategic move by acquiring Adumo positions Lesaka to gain a larger market share in the southern African region as it expands into new markets. The company plans to continue making acquisitions in the near future to solidify its presence in the industry.
Group chair Ali Mazanderani expressed during the earnings call that the company’s acquisition momentum is expected to remain strong, with plans for more add-on acquisitions in alignment with their strategic goals.