Lesaka Technologies’ R1.6-billion proposed acquisition of payments platform Adumo has been given the green light by the Competition Commission.
Nasdaq- and JSE-listed fintech group Lesaka announced in May that it was buying Adumo RF for R1.6-billion in cash and equity in the form of new shares in Lesaka common stock. The cash component of the deal is in the region of R232-miullion, funded by internal cash resources and external financing.
The Competition Commission on Thursday said it had recommended that the Competition Tribunal approve the transaction without any conditions.
Adumo’s ultimate shareholders include Apis Growth Fund I (a private equity fund managed by Apis Partners), African Rainbow Capital (the largest shareholder of Crossfin Holdings), the International Finance Corp and Adumo management.
Adumo serves 23 000 active merchants. Its primary operations include card acquiring, integrated payments and reconciliation services, processing some R24-billion in throughput per year.
Its corporate card services cover over 245 000 cardholders supporting payroll, incentives, rewards and expense management. Adumo ISV, also known as GAAP, is a large point-of-sale and software-as-a-service solutions provider to the hospitality sector in Southern Africa.
Payment technologies
“The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. The proposed transaction does not raise significant public interest concerns,” it said in a statement.
In May, when the deal was first announced, Lesaka Southern Africa CEO Lincoln Mali 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”.
Adumo CEO Paul Kent will join Lesaka’s executive leadership team following the conclusion of the deal. – © 2024 NewsCentral Media
