Afrigather NASDAQ-listed South African fintech Lesaka Applied sciences will finalise its $85 million acquisition of fintech startup Adumo in October 2024 after receiving approval from shareholders and South Africa’s Competitors Fee.
First introduced in Could, the deal will broaden Lesaka’s shopper and SME service provider financing providers into Botswana, Kenya, Namibia, South Africa and Zambia.
“This acquisition permits us to supply cost processing, built-in funds and reconciliation options to SME retailers in South Africa, Namibia and Botswana,” the corporate stated on an earnings name on Thursday. “It additionally permits us to enter a brand new market vertical, being the hospitality sector.”
By the acquisition, Lesaka claims it is going to attain 1.7 million clients and 119,000 retailers within the Southern African area. The corporate at present has 1.5 million clients.
Lesaka, with a market capitalisation of $315 million, owns cost supplier EasyPay, and Kazang, a card-acquiring POS machine firm. In February, the corporate acquired point-of-sale supplier Touchsides for an undisclosed quantity.
Adumo’s acquisition will allow Lesaka to seize a better market share within the southern African area after increasing into new markets. Opponents like YOCO are solely based mostly in South Africa. Lesaka will make extra acquisitions within the coming months.
“Our run fee of acquisitions is just not anticipated to decelerate and we anticipate we will probably be making add-on acquisitions pretty incessantly,” Group chair Ali Mazanderani stated on the earnings name. “Now we have a number of potential targets which match clearly into our acknowledged technique.”
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