Fintech
Latest news: Lesaka acquires fintech platform Adumo for $85 million
Lesaka Technologies, the NASDAQ-listed fintech company with a market capitalization of R4.5 billion ($242 million), is acquiring payments platform Adumo for R1.59 billion ($85 million) in cash and shares . The deal is expected to be completed in the third quarter of 2024 and will extend Lesaka’s payments footprint in the Southern Africa region to five countries.
Founded in 2019, Cape Town-based Adumo provides POS devices for card acquisition, integrated payment and reconciliation services to merchants and consumers. The company says it processes more than R24 billion ($1.3 billion) a year and has 23,000 merchants and 240,000 consumers respectively using its services.
Lesaka currently owns EasyPay, South Africa’s largest non-bank-owned payment system and Kazang, a very popular card acquiring POS device company. A combination of services will allow the company to capture a significant market share in the Southern African region, where competing startups like YOCO are still only based in South Africa.
In February, Lesaka acquired Touchsides, a data analytics and commerce services company with more than 10,000 point-of-sale terminals across South Africa, for an undisclosed amount. Touchsides was previously owned by international drinks giant Heineken.
According to Lesaka, the acquisition will give the company a footprint of 1.7 million active consumers and 119,000 merchants across South Africa, Namibia, Botswana, Zambia and Kenya. “The acquisition strengthens Lesaka’s position as a natural consolidator of Southern Africa’s Fintech and will enhance our strengths in both the consumer and commercial markets,” the company said in a statement.