Breaking: Lesaka completes acquisition of Adumo for $96 million

Nasdaq-listed fintech Lesaka Applied sciences has accomplished the acquisition of fintech firm Adumo for $96 million. Within the money and inventory deal, Lesaka paid  $13 million in money. The ultimate acquisition quantity is $10 million greater than the determine beforehand reported in Might because of a 27% improve in Lesaka’s share value.

“We’re thrilled to be becoming a member of the Lesaka group, making a Southern African fintech of great scale, with main positions in a number of verticals and sectors,” mentioned Adumo CEO Paul Kent.

Lesaka shareholders and South Africa’s Competitors Fee permitted the deal in September 2024.

Adumo’s acquisition will assist Lesaka attain 1.7 million lively shoppers and 120,000 retailers. The corporate may also rent 3,300 staff in South Africa, Namibia, Botswana, Zambia, and Kenya.

It is going to improve Lesaka’s market share within the southern African area. Rivals like YOCO are solely primarily based in South Africa.

Based in 2019, Cape City-based Adumo offers card-acquiring POS gadgets, built-in funds and reconciliations providers to retailers and shoppers. The corporate claims to course of over R24 billion ($1.3 billion) yearly and has 23,000 retailers and 240,000 shoppers utilizing its providers respectively.

Lesaka, with a market capitalisation of $310 million, additionally owns cost supplier EasyPay, and Kazang, a card-acquiring POS machine firm. In February 2024, the corporate acquired point-of-sale supplier Touchsides for an undisclosed quantity.

Lesaka is trying to make extra acquisitions and already has “a number of potential targets” to drive its development. In its newest monetary outcomes launched in August, Lesaka recorded an 11% leap in income to R10.6 billion and a web lack of R326 million for the monetary ended June 2024.