Lesaka Technologies, a fintech startup based in South Africa, recently signed a deal to acquire Adumo, a payment solutions provider, for nearly $86 million. Under the terms of the agreement, Lesaka Technologies will pay Adumo $12.5 million in cash. The funds will be sourced both internally and from external financiers.
South African Fintech Startup Leseka Tech Signs Deal to Buy Payments Provider for $86M
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Lesaka Technologies to Issue Shares to Adumo Shareholders
The South African fintech startup, Lesaka Technologies, recently inked a deal to acquire the payment solutions provider, Adumo, for approximately $86 million. As part of the deal, Lesaka Technologies will issue 17,279,803 shares of its common stock to Adumo’s principal shareholders.
A report indicates that some of Adumo’s principal shareholders set to receive Lesaka Technologies’ stock include Apis Growth Fund I, a private equity fund managed by U.K.-based venture capital firm Apis Partners, and South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC).
As part of the agreement, the fintech startup will pay Adumo $12.5 million in cash, sourced both internally and from external financiers.
Commenting on the deal, which will see Lesaka Technologies expand into countries such as Kenya, Botswana, Namibia, and Zambia, Lincoln Mali, CEO of Lesaka Southern Africa, said:
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 Southern Africa.
According to a report by Techcentral, the two entities are hoping to finalize the deal, which is still pending shareholder approval, in the third quarter of 2024. Upon approval of the acquisition, Adumo CEO Paul Kent will join the executive team at Lesaka Technologies.
The completion of Adumo’s acquisition will enable the ecosystem of the South African fintech startup to serve 1.7 million active consumers and 119,000 merchants. It is also expected to process more than $13.5 billion (250 billion rands) in throughput.
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