NASDAQ-listed Lesaka Technologies is set to conclude its $85 million acquisition of Adumo, a leading fintech startup, following approvals from shareholders and South Africa’s Competition Commission. The deal, initially announced in May, is poised to significantly bolster Lesaka’s presence in Southern Africa, extending its reach into Botswana, Kenya, Namibia, Zambia, and South Africa.
Expanding Footprint Across Southern Africa
The acquisition positions Lesaka to expand its portfolio of consumer and SME-focused financial services. This includes enhanced payment processing, integrated payment systems, and reconciliation solutions targeting small and medium-sized enterprises in Namibia, South Africa, and Botswana. Additionally, the deal marks Lesaka’s entry into the hospitality sector, a new market vertical for the company.By integrating Adumo’s offerings, Lesaka aims to increase its customer base to 1.7 million and its merchant reach to 119,000, up from its current 1.5 million users. This expansion aligns with Lesaka’s broader strategy to strengthen its regional dominance while diversifying its service portfolio.
Strengthening Competitive Edge
Lesaka, which boasts a market capitalization of $315 million, has been actively expanding its footprint. The company already owns EasyPay, a leading payment provider, and Kazang, a card-acquiring POS device business. Earlier this year, Lesaka acquired Touchsides, a point-of-sale solutions provider, further underscoring its aggressive growth strategy.With Adumo under its umbrella, Lesaka is expected to gain a significant edge over competitors like YOCO, which operates exclusively in South Africa. Lesaka’s broader geographical footprint and diversified services may enable it to capture a larger share of the Southern African market.
A Commitment to Growth Through Acquisitions
Lesaka’s leadership has emphasized its commitment to growth through strategic acquisitions. Speaking during an earnings call, Group Chair Ali Mazanderani stated, “Our run rate of acquisitions is not expected to decelerate. We anticipate making add-on acquisitions fairly frequently. Several potential targets align with our stated strategy.”The Adumo acquisition reflects this approach, providing Lesaka with new opportunities to scale its operations, diversify its services, and enter untapped markets. The deal is expected to close in October, cementing Lesaka’s status as a major player in Southern Africa’s fintech ecosystem.
