Lesaka Technologies, a fintech firm with a market capitalization of $242 million, is set to acquire Adumo, a Cape Town-based payment platform, for $85 million in cash and equity. The transaction, slated for completion in the third quarter of 2024, aims to enhance Lesaka’s presence in the southern African payment market, extending its operations to South Africa, Namibia, Botswana, Zambia, and Kenya. Lesaka currently owns EasyPay, South Africa’s largest non-bank payment switch, and Kazang, a popular card-acquiring POS device company. The acquisition will augment Lesaka’s existing services and significantly boost its market share, enabling the company to compete more effectively against regional startups like YOCO.
Founded in 2019, Adumo specializes in card-acquiring POS devices, integrated payments, and reconciliation services, servicing over 23,000 merchants and 240,000 consumers, with an annual processing volume exceeding $1.3 billion. The integration of Adumo’s capabilities with Lesaka’s portfolio, which recently expanded with the acquisition of Touchsides, a data analytics and merchant services company, will consolidate Lesaka’s position as a leading fintech consolidator in the region. Post-acquisition, Lesaka will boast a customer base of 1.7 million active consumers and 119,000 merchants. Lesaka's strategic move underscores its commitment to strengthening its consumer and merchant market presence across southern Africa.
