Lesaka Technologies Bolsters Southern African Market Share Through Adumo Purchase

Lesaka Technologies Bolsters Southern African Market Share Through Adumo Purchase

By Staff Writer, 12 May 2024

Lesaka Technologies, a prominent fintech firm listed on the NASDAQ with a market capitalization of R4.5 billion ($242 million), has announced its acquisition of the payment platform Adumo for R1.59 billion ($85 million) in cash and equity.

This strategic move aims to expand Lesaka's payment presence across southern Africa, encompassing five countries.

The transaction, expected to finalize in the third quarter of 2024, signifies Lesaka's commitment to strengthening its foothold in the region's burgeoning fintech landscape.

Established in 2019 and headquartered in Cape Town, Adumo specializes in providing comprehensive card-acquiring point-of-sale (POS) devices, integrated payment solutions, and reconciliation services to merchants and consumers.

With an impressive annual processing volume exceeding R24 billion ($1.3 billion), Adumo serves a substantial clientele, boasting 23,000 merchants and 240,000 consumers.

Lesaka Technologies already holds significant assets in the region, notably EasyPay, the largest non-bank-owned payment switch in South Africa, and Kazang, a widely recognized provider of card-acquiring POS devices.

By integrating Adumo's offerings into its portfolio, Lesaka aims to consolidate its position in the southern African market.

This move is strategically timed as it positions Lesaka to capture a significant market share, especially in regions where competitors like YOCO are currently localized primarily within South Africa.

Source:  Ephraim Modise / TechCabal

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