Nasdaq-listed Lesaka Technologies has finalized the acquisition of Adumo for $96 million. The deal included a cash component of $13 million and its value increased by $10 million compared to the initial report, as Lesaka’s stock price rose by 27%.
We are thrilled to be joining the Lesaka group, creating a Southern African FinTech of significant scale, with leading positions in several verticals and sectors.
Paul Kent, Adumo CEO .
With the acquisition of Adumo, Lesaka Technologies expects to serve 1.7 million active consumers and 120,000 merchants. The FinTech also plans to hire 3,300 employees in South Africa, Namibia, Botswana, Zambia, and Kenya.
Adumo’s acquisition will strengthen Lesaka Technologies’ position in the southern African market, surpassing competitors like YOCO, which are solely based in South Africa.
Founded in 2019 in Cape Town, Adumo provides card-acquiring POS devices, and integrated payment and reconciliation services to merchants and consumers. With over R24 billion ($1.3 billion) in annual transactions, Adumo serves a customer base of 23,000 merchants and 240,000 consumers.
Lesaka Technologies, with a market capitalization of $310 million, has a portfolio that includes EasyPay, a payment provider, and Kazang, a card-acquiring POS device company. In February 2024, the company expanded its operations by acquiring Touchsides, a point-of-sale provider, for an undisclosed amount.
Lesaka Technologies is focusing on expanding through acquisitions and has several potential targets in its sights. The company’s latest financial results for the year ending June 2024 show an 11% increase in revenue to R10.6 billion, but it also recorded a net loss of R326 million.
