Acquisition Details - Lesaka Technologies completed the acquisition of Adumo RF (Pty) Ltd for a total purchase consideration of ZAR 1.67 billion ($96.2 million), settled through the issuance of 17,279,803 shares of Lesaka's common stock and a cash payment of ZAR 232.2 million ($13.4 million) [1] - The transaction implies a purchase price based on Lesaka's October 1, 2024, closing price of ZAR 83.05 per share on the Johannesburg Stock Exchange [1] - Lesaka also agreed to purchase 2,601,410 shares of its common stock for ZAR 207.2 million ($12.0 million) to provide cash liquidity to indirect Adumo shareholders, expected to complete in early October 2024 [5] Strategic Impact - The acquisition of Adumo, South Africa's largest independent payments processor, reinforces Lesaka's position as a consolidator in Southern African fintech [2] - The transaction enhances Lesaka's consumer and merchant market strengths, following the successful integration of Connect, Kazang, and Touchsides businesses [2] - The combined fintech platform will serve 1.7 million active consumers, 120,000 merchants, and process over ZAR 270 billion in throughput annually, including ZAR 45 billion in card transactions, ZAR 105 billion in VAS, and ZAR 120 billion in cash [3] - The acquisition broadens Lesaka's product offering and deepens penetration in both merchant and consumer segments, accelerating growth and providing opportunities for innovation and market expansion [4] Operational Integration - Adumo CEO Paul Kent joins Lesaka's executive leadership team, taking responsibility for the merchant pillar, while Crossfin CEO Dean Sparrow joins the board as a non-executive director [4] - The combined group will have over 3,300 employees operating in 5 countries: South Africa, Namibia, Botswana, Zambia, and Kenya [3] - Adumo's businesses, including Adumo Payments, Adumo ISV (GAAP), and Adumo Ventures, will integrate with Lesaka's existing operations, offering a holistic suite of products and services to merchants and consumers [6][7] Adumo Overview - Adumo is South Africa's largest independent payments processor with over 20 years of experience, serving approximately 23,000 active merchants across South Africa, Namibia, Botswana, and Kenya [6] - The company generates the majority of its revenue from per-transaction fees and SaaS subscription fees, employing approximately 950 employees as of June 30, 2024 [8] - Adumo's businesses include payment processing, integrated software solutions, and online commerce solutions, serving clients such as Anglo American, Coca-Cola, KFC, McDonald's, and Nando's [7] Lesaka Overview - Lesaka Technologies is a South African fintech company providing financial services and software to underserved consumers and merchants in Southern Africa [9] - The company offers a wide range of solutions, including transactional accounts, lending, insurance, cash management, card acceptance, supplier payments, software services, and bill payments [9] - Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK) [10]
Lesaka completes the acquisition of Adumo, cementing its position as the leading independent fintech in Southern Africa