Lesaka $86M Adumo Acquisition Gets Regulatory, Shareholder Nod

STARTUP VENTURE CAPITALSeptember 16, 2024 at 11:43 AM UTC

TLDR

Lesaka Technologies to complete $86 million acquisition of Adumo, expanding services to Botswana, Kenya, Namibia, South Africa, and Zambia.
The acquisition enhances payment processing, integrated payments, and reconciliation solutions for SME merchants while entering the hospitality sector.
Lesaka's acquisition approved by shareholders and South Africa's Competition Commission, with finalization expected in October.

NASDAQ-listed South African fintech company Lesaka Technologies is set to finalize its $86 million acquisition of fintech startup Adumo in October, following approval from shareholders and South Africa’s Competition Commission.

The acquisition, announced in May, will significantly expand Lesaka’s consumer and SME merchant financing services into Botswana, Kenya, Namibia, South Africa, and Zambia.

On an earnings call, Lesaka highlighted that the deal will enhance its payment processing, integrated payments, and reconciliation solutions for SME merchants, particularly in South Africa, Namibia, and Botswana. It will also introduce Lesaka into the hospitality sector.

Key Takeaways

The Adumo acquisition strengthens Lesaka’s position in southern Africa, outpacing competitors like YOCO, which operates exclusively in South Africa. Post-acquisition, Lesaka expects to reach 1.7 million customers and 119,000 merchants across the Southern African region, up from its current 1.5 million customers. Lesaka, with a market capitalization of $315 million, owns key brands like EasyPay and Kazang and previously acquired point-of-sale provider Touchsides in February 2024.

Startup

Lesaka

Adumo

Acquisition

South Africa

Fintech