Lesaka Technologies, a South African fintech startup, has announced its plans to acquire payment solutions provider Adumo for approximately $86 million. This acquisition will be facilitated through the issuance of 17,279,803 shares of Lesaka Technologies' common stock to Adumo's principal shareholders, which include entities like Apis Growth Fund I managed by U.K.-based venture capital firm Apis Partners and South African billionaire Patrice Motsepe's African Rainbow Capital (ARC). Additionally, Lesaka Technologies will pay $12.5 million in cash, sourced internally and from external financiers, as part of the agreement.
The acquisition is aimed at expanding Lesaka Technologies' footprint into countries such as Kenya, Botswana, Namibia, and Zambia, leveraging Adumo's extensive customer base of over 245,000 consumers and payment technologies. Pending shareholder approval, Adumo CEO Paul Kent is set to join Lesaka Technologies' executive team, marking a strategic move towards strengthening the fintech platform in Southern Africa. Once completed, the acquisition is expected to enhance the ecosystem of Lesaka Technologies, serving 1.7 million active consumers, and 119,000 merchants, and processing over $13.5 billion in throughput. The deal is anticipated to be finalized in the third quarter of 2024, pending regulatory and shareholder approval.
