South Africa: Lesaka to acquire Apis-backed payment platform Adumo
Lesaka has signed a definitive agreement to acquire Adumo for about $85.5 million.
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NASDAQ and Johannesburg Stock Exchange listed Lesaka Technologies has signed a definitive agreement to acquire South African payments processor Adumo for ZAR 1.59 billion (c. $85.5 million).
Adumo’s primary operations include card acquiring, integrated payments and reconciliation services processing more than ZAR 24 billion ($1.3 billion) in throughput per year. The company’s corporate card services cover over 245,000 card holders supporting payroll, incentives, rewards, and expense management. Adumo ISV, also known as GAAP, is the largest POS and software-as-a-service solutions provider to the hospitality sector in Southern Africa.
The transaction is subject to shareholder and regulatory approvals. The purchase consideration will be settled through the combination of an issuance of 17,279,803 shares of Lesaka common stock to Adumo’s current ultimate shareholders plus ZAR 232 million (c. $12.5 million) in cash, funded by internal cash resources and external financing.
Adumo’s ultimate shareholders include Apis Growth Fund I, a private equity fund managed by Apis Partners; African Rainbow Capital (ARC), the largest shareholder of Crossfin; as well as the International Finance Corporation and Adumo management.
Commenting on the transaction, Lincoln Mali, CEO of Lesaka Southern Africa, said: “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.”
Adumo co-founder and chief executive, Paul Kent expressed his excitement about the partnership: “We look forward to joining forces with the Lesaka team and 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.”
Dean Sparrow, chief executive of Crossfin said: “We are very pleased to have found an exceptional home for the Adumo Group and see this next step in Adumo’s growth journey as an incredibly exciting and logical evolution for the business, its customers and staff alike.”
Matteo Stefanel and Udayan Goyal, co-founders and managing partners of Apis Partners commented: “Apis has enjoyed a very successful partnership with Adumo over the past few years, supporting the company with significant capital raises and coordinating key acquisitions. We look forward to being a part of the exciting new chapter with Lesaka, which we expect will bring continued success to the business.”
The transaction is expected to close in the third calendar quarter of 2024.
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