According to a Thursday announcement by Michael Jordaan, chairman and co-founder of Bank Zero, Lesaka Technologies has bought Bank Zero for R1.1 billion.
“Our partnership with Lesaka creates long-term value, combining digital banking innovation with fintech scale,” said Jordaan, Bank Zero Chairman.
“There are lots of regulatory approvals still needed, but both teams are excited about the merger synergies,” he added.
Jordaan to remain as Bank Zero’s chairman
Jordaan also stated that the management team will continue to be in place and that he will continue to serve as chairman of Bank Zero after the acquisition.
Newly issued shares and up to R91 million in cash will be used to cover the acquisition consideration.
Bank Zero shareholders will own about 12 per cent of Lesaka’s shares. After the deal is finalised, Yatin Narsai will remain CEO of Bank Zero, while Michael Jordaan will join the Lesaka Board of Directors.
Yatin Narsai, Bank Zero CEO, said, “Joining Lesaka accelerates our mission to disrupt traditional banking while maintaining our customer-first approach.”
About Lesaka Technologies
A financial technology business based in South Africa, Lesaka Technologies (previously Net1) is listed on the Johannesburg Stock Exchange (JSE) and the NASDAQ.
Serge Belamant established it and created its foundational technologies. According to a separation agreement he submitted to the SEC, he left the company in 2017.
Value Capital Partners made an R580 million investment in the business in 2020 and started the process of changing its strategy by selecting a new board and management group. Chris Meyers became the company’s new CEO in 2021.
When Net1 acquired the Connect Group for R3.7 billion a year later, it changed its name to Lesaka Technologies.
Lesaka’s main goal
Lesaka’s main primary is financial inclusion by providing banking services to merchants and previously disadvantaged areas.
Up until 2018, the Johannesburg-based business oversaw the social grant payment system in Botswana and South Africa.
In 2023, Meyer resigned as CEO of Lesaka. Former chairman Kuben Pillay was named lead independent director, while Ali Mazanderani was named executive chairman.
“This acquisition is transformative, allowing us to integrate trusted digital banking into our fintech ecosystem and better serve our customers,” said Ali Mazanderani, Lesaka Chairman.
Lesaka’s aggressive acquisition
The firm acquired Touchsides, a supplier of platform-as-a-service and software-as-a-service solutions, as part of its recent aggressive acquisition spree.
Adumo, a Cape Town-based payment platform, was purchased by Lesaka Technologies in May 2024 for $85 million.
“Lesaka expects the transaction to support a more optimised balance sheet in the future, allowing the group to finance the existing and continued growth in lending books through customer deposits,” it said.
Benefits for Lesaka Technologies
This acquisition will improve lending unit economics, and Lesaka’s gross debt will be less leveraged as the group’s Consumer and Merchant Divisions use less bank debt.
”Post completion, and subject to regulatory approval, Lesaka could achieve more than ZAR 1.0 billion reduction in gross debt,” the company said.
The proposed transaction requires the completion of customary closing conditions and regulatory clearances that are typically necessary for a transaction of this kind. These consist of approval from the Competition Commission, Exchange Control, and the Prudential Authority, a South African Reserve Bank branch.
About Bank Zero
Jordaan, banking pioneer Yatin Narsai, and five other co-founders established Bank Zero seven years ago. It is 20 per cent owned by women and 45 per cent by Black people.
Launched in 2021 and registered with the South African Reserve Bank in 2018, the mutual bank provides affordable rates for both personal and business banking.
Bank Zero employs LinuxONE as a secure platform that can guard against data breaches using IBM’s Secure Service Container and IBM Z mainframe systems.
With its mobile app, which is accessible on both Android and iPhone, it functions as a totally digital bank without any physical bank branches.
Bank Zero’s financial standing
Bank Zero handled more than 40,000 funded accounts throughout South Africa and had more than R400 million in deposits as of April 2025.
According to the bank, year-over-year growth in deposits, card purchases, and electronic fund transfers is more than 50 per cent.
All of its customers spent R415 million on cards for the year that ended in December 2024.
Lesaka anticipates that the transaction will be finalised after regulatory clearances and that Bank Zero will turn a profit in the upcoming fiscal year.
Lesaka’s FY2025 results, which are anticipated by September 4, 2025, will provide further financial information.