A deal worth ZAR1.59 billion (US $85.9 million) has seen Lesaka acquire South African fintech company Adumo, pending shareholder and regulatory clearance.
Providing services like card acquisition, integrated payments, and reconciliation to about 23,000 active merchants, Adumo is the biggest independent payments processor in South Africa. Following its 2021 IFC funding round of US$15 million, the company has been buying up smaller payment companies such as SwitchPay, WireCard, GAAP, SureSwipe, and iKhokha.
Currently, Lesaka, a fintech business based in South Africa, has acquired it. Lesaka uses its in-house developed payment and banking systems to provide merchants and customers in the region with premium financial services solutions.
ZAR 232 million (US $12.5 million) in cash and 17,279,803 shares of Lesaka common stock will be issued to Adumo’s current ultimate shareholders as part of the ZAR1.59 billion (US$85.9 million) acquisition price. The ultimate shareholders of Adumo comprise IFC, Adumo management, African Rainbow Capital, the largest shareholder of Crossfin Holdings, and Apis Growth Fund I, a private equity fund managed by Apis Partners LLP.
Card acquiring, integrated payments, and reconciliation services are Adumo’s main business activities. It provides services to about 23,000 active merchants and processes over ZAR24 billion (US $1.3 billion) in throughput annually. Over 245,000 cardholders are supported by the company’s corporate card services, which include payroll, incentives, rewards, and expense management.
Adumo serves about 23,000 active merchants and processes over ZAR24 billion (US $1.3 billion) in throughput annually. Its main business activities include card acquiring, integrated payments, and reconciliation services. With regard to payroll, incentives, rewards, and expense management, the company provides corporate card services to over 245,000 cardholders. Adumo ISV, which goes by GAAP, is the biggest supplier of point-of-sale (POS) and software-as-a-service (SaaS) solutions to the Southern African hospitality industry.
Following the acquisition, the Lesaka ecosystem will support 119,000 merchants, 1.7 million active customers, and process more than ZAR250 billion in throughput annually. Across five countries—South Africa, Namibia, Botswana, Zambia, and Kenya—the group will employ over 3,300 people locally.
The acquisition, according to the company, strengthened its position as the “natural consolidator” of fintech in Southern Africa and would bolster its advantages in the merchant and consumer markets.
“We are thrilled to welcome the Adumo team into the Group and Adumo CEO Paul Kent onto our executive leadership team. 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. The pending acquisition of Adumo is another significant milestone for Lesaka as we build the top fintech platform in Southern Africa,” said Lincoln Mali, CEO of Lesaka Southern Africa.
Together with the Lesaka team, Paul Kent, co-founder and CEO of Adumo, expressed excitement about “contributing to the continued success of the Lesaka story.”
“Our combined offering will significantly enhance the customer value proposition, and it is a natural fit considering our respective strengths and technology offerings,” he said.
