SA Fintech Lesaka Technologies Set To Acquire Adumo
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SA Fintech Lesaka Technologies Set To Acquire Adumo. South African Fintech Lesaka Technologies has signed a definitive agreement to acquire Adumo RF for R1.59 billion ($85.9 million). The ultimate shareholders include Apis Growth Fund I, a private equity fund managed by Apis Partners LLP (“Apis”), African Rainbow Capital (“ARC”), the largest shareholder of Crossfin Holdings (RF) Pty Ltd (“Crossfin”), as well as the International Finance Corporation and Adumo management.
After giving effect to the acquisition, Lesaka’s ecosystem will serve 1.7 million active consumers,119 000 merchants, and process over ZAR 250 billion in through put (ZAR 40 billion card, ZAR 100billion VAS and ZAR 110 billion cash) per year. The Group will have over 3 300 employees operating on the ground in 5 countries: South Africa, Namibia, Botswana, Zambia, and Kenya. The Acquisition reinforces Lesaka’s position as natural consolidator of Southern African Fintech and will enhance its strengths in both the consumer and merchant markets and follows the successful integration of the Connect and Kazang businesses and the recent acquisition of Touchsides.
Commenting on the transaction, Lincoln Mali, CEO of Lesaka Southern Africa, said: “We are thrilled to welcome the Adumo team into the Group and Adumo CEO Paul Kent onto our executive leadership team. Adumo’s customer base provides us access to more than 245 000 consumers and to payment technologies that we can incorporate into our existing operations. The pending acquisition of Adumo is another significant milestone for Lesaka as we build the top fintech platform in SouthernAfrica.”
Adumo serves approximately 23 000 active merchants. Its primary operations include card acquiring,integrated payments and reconciliation services processing more than ZAR 24 billion ($1.3 billion) inthroughput per year. The company’s corporate card services cover over 245 000 card holderssupporting payroll, incentives, rewards, and expense management. Adumo ISV, also known as GAAP,is the largest POS and Software-as-a-Service solutions provider to the hospitality sector in Southern Africa.
Steve Heilbron, Head of Corporate Development at Lesaka, added: “This is a landmark deal forus. We are excited to welcome respected shareholders Apis and ARC. The augmentation of product offerings broadens our value proposition and enhances our ability to be disruptive and solve for ourmerchants’ pain points.”
Adumo Co- Founder and Chief Executive Paul Kent expressed his excitement about the partnership: “We look forward to joining forces with the Lesaka team and contributing to thecontinued success of the Lesaka story. Our combined offering will significantly enhance the customervalue proposition, and it is a natural fit considering our respective strengths and technology offerings.”