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South African Fintech Giant Adumo Acquired by Lesaka in $85 Million Deal

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South Africa’s leading independent payments processor, Adumo, has been acquired by fellow fintech company Lesaka in a deal valued at ZAR 1.59 billion (US$85.9 million), subject to approvals.

Adumo, a major player in the South African fintech scene, boasts over 23,000 active merchants who rely on their services for card acquiring, integrated payments, and reconciliation.

Since securing US$15 million in funding from the International Finance Corporation (IFC) in 2021, Adumo embarked on a strategic acquisition spree, consolidating its market position by acquiring SwitchPay, WireCard, GAAP, SureSwipe, iKhokha, and other payment processors.

The acquiring company, Lesaka, is a South African fintech leader known for its proprietary banking and payment technologies that provide advanced financial solutions to merchants and consumers across Southern Africa.

The acquisition price will be settled through a combination of cash and stock: ZAR 232 million (US$12.5 million) in cash and 17,279,803 shares of Lesaka common stock issued to Adumo’s current shareholders.

These shareholders include Apis Growth Fund I, African Rainbow Capital (majority shareholder of Crossfin Holdings), IFC, and Adumo’s management team.

Adumo’s core services encompass card acquiring, integrated payments, and reconciliation, catering to over 23,000 active merchants and processing an annual throughput exceeding ZAR24 billion (US$1.3 billion).

Additionally, their corporate card services manage payroll, incentives, rewards, and expense management for over 245,000 cardholders. Notably, Adumo ISV (GAAP) is the leading provider of POS and Software-as-a-Service solutions for the hospitality sector in Southern Africa.

With the acquisition finalized, Lesaka’s reach will significantly expand, encompassing 1.7 million active consumers, 119,000 merchants, and an annual throughput exceeding ZAR250 billion.

The combined group will boast over 3,300 employees operating across five Southern African nations: South Africa, Namibia, Botswana, Zambia, and Kenya.

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