Lesaka Technologies, a powerhouse in the South African fintech scene, has made a bold move by entering into a definitive agreement to acquire Adumo, a fellow South Africa-based Playtech company.
The acquisition, valued at $85.9 million, is set to significantly reshape the fintech landscape in the region, marking a pivotal moment for both companies.
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Adumo: A Cornerstone of South Africa’s Fintech Industry
Founded in 2009 and headquartered in Bryanston, South Africa, Adumo has established itself as the largest provider of point-of-sale (POS) and Software-as-a-Service (SaaS) solutions to the country’s vibrant hospitality industry.
With a focus on integrated payments, reconciliation services, and card acquiring, Adumo serves a substantial client base of approximately 23,000 merchants. Moreover, its corporate card offering is widely embraced, catering to over 245,000 cardholders.
Strengthening Lesaka Technologies Foothold in Fintech
Lesaka Technologies, known for its innovative B2B and B2C financial services, views this acquisition as a strategic move to reinforce its position as a key player in Southern African fintech. By integrating Adumo’s capabilities and clientele into its ecosystem, Lesaka aims to enhance its strengths in consumer and merchant markets.
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Post-acquisition, Lesaka’s solutions ecosystem is poised to serve a combined client base exceeding 119,000 merchants and 1.7 million consumers, processing over $13 billion in throughput annually. Additionally, Lesaka plans to expand its operations beyond South Africa to encompass Kenya, Botswana, Namibia, and Zambia. This expansion will be supported by a workforce exceeding 3,300 employees, solidifying Lesaka’s position as a regional fintech leader.
The acquisition of Adumo by Lesaka Technologies marks a significant milestone in the evolution of the African fintech landscape. With a commitment to innovation and customer-centric solutions, both companies are poised to unlock new opportunities and drive financial inclusion across the region. The deal, expected to be finalised in the third calendar quarter of 2024, heralds a new era of growth and collaboration in African fintech.