South African fintech Lesaka snaps up Adumo in $86m deal
TLDR
- Lesaka Technologies in South Africa to acquire Adumo, a local payments startup, for $85.9 million.
- The deal is anticipated to be finalized in Q3 2024 pending shareholder and regulatory approval.
- Acquisition involves $12.5 million in cash and 17,279,803 shares of Lesaka stock to Adumo's shareholders.
Lesaka Technologies, a fintech company headquartered in South Africa, has entered into a definitive agreement to acquire Adumo, a payments startup also based in the country, in a deal said to be valued at around $85.9 million.
The acquisition, expected to close in the third quarter of 2024, is contingent upon approval from shareholders and regulatory authorities. Under the terms of the agreement, the transaction will be completed using a combination of $12.5 million in cash and the issuance of 17,279,803 shares of Lesaka common stock to Adumo's current "ultimate" shareholders.
The cash portion of the deal will be financed through a combination of external financing and internal cash reserves. Adumo's "ultimate" shareholders include Apis Growth Fund I, a private equity fund managed by UK-based VC Apis Partners, and African Rainbow Capital (ARC), a South African investment firm.
Key Takeaways
This acquisition solidifies Lesaka's position as a significant player in the Southern African fintech sector. With the combined resources, the entity will now cater to over 1.7 million active consumers and 119,000 merchants spread across five countries: South Africa, Namibia, Botswana, Zambia, and Kenya. Following its $15 million funding round from IFC in 2021, Adumo embarked on an acquisition spree, acquiring companies such as SwitchPay, WireCard, GAAP, SureSwipe, iKhokha, and several other smaller payment firms. Africa is anticipated to experience rapid growth in the fintech market throughout this decade, with a projected fintech revenue compound annual growth rate (CAGR) of 32% until 2030. This growth will be driven by the establishment of new ventures as well as the consolidation of both smaller and larger players in the industry.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.