Lesaka Technologies on Wednesday said it has concluded its acquisition of payment processing firm Adumo through the issuance of around 17 million shares of Lesaka common stock and a cash payment of R232.2-million.
According to Lesaka, the transaction brings the total purchase consideration to R1.67-billion using Lesaka’s 1 October closing price on the JSE of R83.05/share.
“The Adumo transaction is an exciting addition to the Lesaka story,” said Lincoln Mali, CEO of Lesaka Technologies Southern Africa, in a statement on Wednesday. TechCentral will publish a TechCentral Show interview with Mali in the coming days, in which he unpacks the acquisition.
“It significantly enhances our technology platform, adding customers, solutions and meaningful scale. I would like to extend a warm welcome to all the Adumo employees, as well as Adumo CEO Paul Kent who joins our executive leadership team.”
Kent will take responsibility for Lesaka’s merchant division, which the group expects to grow now that the interest rate cutting cycle has begun. Dean Sparrow, CEO of Crossfin Technology Holdings, also joins the Lesaka board as non-executive director.
According to Mali, the acquisition means the group’s consolidated fintech platform now serves 1.7 million active consumers and 120 000 merchants, and processes more than R270-billion in transactions annually.
Approved
The group now has more than 3 300 employees operating across five countries: South Africa, Namibia, Botswana, Zambia and Kenya.
Lesaka announced its intention to acquire Adumo in May in a R1.6-billion cash-and-share deal. The deal has been approved by the competition authorities. – © 2024 NewsCentral Media
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