Lesaka Technologies Acquires Adumo RF in R1.6 Billion Deal

JSE-listed fintech group Lesaka Technologies has announced its acquisition of payments platform Adumo RF for R1.6 billion in a combination of cash and equity, signaling a strategic move to strengthen its position in the payments industry.

The deal comprises a cash component totaling approximately R232 million, funded by internal cash resources and external financing. Adumo’s ultimate shareholders include Apis Growth Fund I (managed by Apis Partners), African Rainbow Capital (the largest shareholder of Crossfin Holdings), the International Finance Corp, and Adumo management.

Adumo boasts a significant presence, serving 23,000 active merchants and processing around R24 billion in throughput annually. Its core operations encompass card acquiring, integrated payments, and reconciliation services. Additionally, Adumo’s corporate card services cater to over 245,000 cardholders, offering support for payroll, incentives, rewards, and expense management. The company’s ISV division, known as GAAP, provides point-of-sale and software-as-a-service solutions to the hospitality sector in Southern Africa.

Following the conclusion of the deal, Adumo CEO Paul Kent is set to join Lesaka’s executive leadership team.

Lincoln Mali, CEO of Lesaka Southern Africa, expressed optimism about the acquisition, stating, “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 acquisition is subject to regulatory and shareholder approvals and is expected to close in the third quarter. This strategic move positions Lesaka Technologies for further growth and expansion in the dynamic payments landscape, leveraging Adumo’s established market presence and innovative solutions to enhance its offerings and drive value for shareholders.