In a significant move in the fintech industry, South African fintech company Adumo has been acquired by its counterpart Lesaka in a deal worth ZAR1.59 billion (US$85.9 million), pending shareholder and regulatory approval.
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Adumo, known as South Africa’s largest independent payments processor, serves approximately 23,000 active merchants with a range of services including card acquiring, integrated payments, and reconciliation services. Since securing US$15 million in funding from IFC in 2021, Adumo has been actively expanding through acquisitions, including SwitchPay, WireCard, GAAP, SureSwipe, iKhokha, and other smaller payment companies.
Now, Adumo itself has been acquired by Lesaka, another South African fintech company renowned for leveraging proprietary banking and payment technologies to provide superior financial services solutions to merchants and consumers in Southern Africa.
The acquisition, valued at ZAR1.59 billion (US$85.9 million), will be settled through a combination of issuing 17,279,803 shares of Lesaka common stock to Adumo’s current ultimate shareholders, along with ZAR 232 million (US$12.5 million) in cash. Adumo’s ultimate shareholders include Apis Growth Fund I, African Rainbow Capital, IFC, and Adumo management.
Adumo’s extensive operations encompass card acquiring, integrated payments, and reconciliation services, serving over 23,000 active merchants and processing more than ZAR24 billion (US$1.3 billion) in throughput annually. Additionally, Adumo’s corporate card services cater to over 245,000 cardholders, particularly in the hospitality sector.
Following the acquisition, Lesaka’s ecosystem will serve 1.7 million active consumers, and 119,000 merchants, and process over ZAR250 billion in throughput per year. With over 3,300 employees across South Africa, Namibia, Botswana, Zambia, and Kenya, Lesaka positions itself as the leading consolidator of Southern African fintech, enhancing strengths in both consumer and merchant markets.
The acquisition marks a significant milestone for both companies and underscores Lesaka’s ambition to establish itself as the premier fintech platform in Southern Africa.
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