- South African fintech startup Lesaka Technologies signs deal to acquire payment solutions provider Adumo for $86 million.
- Lesaka Technologies to issue 17,279,803 shares of common stock to Adumo’s principal shareholders.
- Deal includes $12.5 million in cash payment, sourced internally and from external financiers.
- Acquisition expected to expand Lesaka Technologies’ operations into Kenya, Botswana, Namibia, and Zambia.
- Pending shareholder approval, Adumo CEO Paul Kent will join Lesaka Technologies’ executive team.
- Combined entity to serve 1.7 million active consumers and 119,000 merchants, processing over $13.5 billion in throughput.
Lesaka Tech Expands Through Acquisition
Leseka Technologies, a burgeoning fintech startup hailing from South Africa, has made significant strides in expanding its market presence by announcing the acquisition of Adumo, a prominent payment solutions provider, in a deal valued at nearly $86 million. This strategic move underscores Leseka Tech’s ambitions to bolster its foothold in the fintech landscape across Africa.
Under the terms of the agreement, Lesaka Technologies will not only inject $12.5 million in cash into the deal, drawn from both internal reservoirs and external financiers, but also issue a substantial 17,279,803 shares of its common stock to Adumo’s principal stakeholders. Among the notable beneficiaries of Lesaka’s stock issuance are Apis Growth Fund I, managed by the U.K.-based venture capital firm Apis Partners, and South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC).
Driving Expansion and Integration
The acquisition of Adumo positions Lesaka Technologies to broaden its operational horizons, extending its reach into key African markets such as Kenya, Botswana, Namibia, and Zambia. By integrating Adumo’s extensive customer base, comprising over 245,000 consumers, and harnessing its cutting-edge payment technologies, Lesaka Tech aims to fortify its existing infrastructure and enhance its service offerings within the Southern African region. Lincoln Mali, CEO of Lesaka Southern Africa, emphasized the significance of this strategic move, highlighting the pivotal role it plays in advancing Lesaka’s vision of becoming the leading fintech platform in the region.