Lesaka Technologies has agreed to buy the digital bank chaired by former FNB CEO Michael Jordaan for R1.1-billion.
Jordaan announced the acquisition in a post on social media late on Thursday evening.
“So Lesaka Technologies Inc bought @BankZeroSA for R1.1-billion. Lot of regulatory approvals still needed, but both teams are excited about the merger synergies,” he posted after Lesaka disclosed the news to its investors in the US, where it has a listing on the tech-heavy Nasdaq stock exchange.
Jordaan said he will stay on as chairman of Bank Zero. “The whole team stays intact,” he said in response to a question.
Bank Zero is a digital mutual bank that has carved a niche for itself by offering app-based banking solutions for both individuals and businesses.
Launched in 2021, it differentiates itself with a strong focus on zero fees for most basic banking activities, including monthly fees, EFT payments and debit orders, setting it apart from traditional banks.
A key feature of Bank Zero’s offering is its patented secure debit card, designed to prevent skimming and online fraud by using different card numbers for different transaction types. Customers can also personalise their cards with their own pictures.
Purchase details
Lesaka said in a statement to investors shortly after 7am on Friday that it will pay for the acquisition through a combination of newly issued shares and up to R91-million in cash.
“The transaction marks another key milestone in Lesaka’s journey to build a vertically integrated fintech platform. The combination of Bank Zero’s digital banking infrastructure and its operational banking licence, together with Lesaka’s fintech and distribution platform, is intended to transform the way Lesaka is able to conduct business in the future, offering key financial, strategic and regulatory benefits,” Lesaka said.
Read: Michael Jordaan mulls partnerships to grow Bank Zero
Those benefits, it said, include better end-to-end servicing of Lesaka’s customer base through a full suite of banking services and accelerated product innovation and streamlined operations across Lesaka’s consumer, merchant and enterprise divisions.
“Lesaka expects the transaction to support a more optimised balance sheet in the future, allowing the group to finance the existing and continued growth in lending books through customer deposits, driving stronger lending unit economics,” it said.
“In addition, the reduction in the use of bank debt in the group’s consumer and merchant divisions will assist in a deleveraging of Lesaka’s gross debt. Post completion, and subject to regulatory approval, Lesaka could achieve more than R1-billion reduction in gross debt.”
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Lesaka said it expects the transaction to be “accretive to its shareholders, with Bank Zero expected to be profitable in the fiscal year following completion of the transaction”. It said it will publish more details about the financial metrics of the deal with its annual financial results, which will be published in early September.
Following completion of the deal, Jordaan will join Lesaka’s board. Yatin Narsai will continue as CEO of Bank Zero. The broader Bank Zero leadership team will remain in their current roles. — (c) 2025 NewsCentral Media
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