NASDAQ-listed fintech powerhouse Lesaka Technologies, with a market worth of R4.5 billion ($242 million), has announced its plans to take over Adumo, a payment platform, in a deal valued at R1.59 billion ($85 million). This transaction, which involves both cash and equity, is set to be finalized in the third quarter of 2024. This strategic move will bolster Lesaka’s presence in the payment sector across five nations in the southern African region.
Adumo, a Cape Town-based firm established in 2019, is known for its card-acquiring POS devices and integrated payment solutions, catering to both merchants and consumers. With an annual transaction volume exceeding R24 billion ($1.3 billion), Adumo boasts a robust client base of 23,000 merchants and 240,000 consumers.
Lesaka Technologies, the parent company of EasyPay, South Africa’s leading non-bank payment switch, and Kazang, a renowned card-acquiring POS device provider, are poised to capture a significant portion of the market in the southern African region through this merger. This puts them ahead of other startups like YOCO that are primarily operational in South Africa.
Earlier this year, Lesaka expanded its portfolio by acquiring Touchsides, a company specializing in data analytics and merchant services previously owned by the global beverage titan Heineken. This acquisition added over 10,000 point-of-sale terminals across South Africa to Lesaka’s assets.
With the addition of Adumo, Lesaka expects to serve 1.7 million active consumers and 119,000 merchants across South Africa, Namibia, Botswana, Zambia, and Kenya. Lesaka stated that this acquisition underscores their role as a leading consolidator in the Southern African fintech landscape and will further enhance their offerings in both the consumer and merchant markets.
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