RMB supports Lesaka in acquisition of Adumo group

Media Release

October 2024

RMB supports Lesaka in acquisition of Adumo group, driving African fintech forward

Lesaka Technologies (“Lesaka”), a leading African fintech focused on driving financial inclusion and opening new possibilities for underserved customers and merchants across Southern Africa, concluded the acquisition of 100% of Adumo. RMB, as trusted financial advisors to Lesaka, acted as the sole financial adviser and sole funder to Lesaka in respect of the acquisition, which has an enterprise value of c. R1.6bn.

Lesaka is an innovative fintech group that has grown to become a leading provider of secure and affordable transaction channels in both formal and informal businesses, as well as un-banked and under-bank individuals. Making use of proprietary banking and payment technologies, they deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa, meeting the unique needs of this market.

Adumo is one of the largest independent payments and merchant acquiring platforms in South Africa, with a track record of over 20 years. Adumo’s primary operations include card acquiring, integrated payments and reconciliation services processing more than ZAR 24 billion in throughput per year, serving c. 23,000 active merchants. They offer these through various segments and brands including hospitality point-of-sale (“PoS”) software and hardware brand GAAP and Adumo Ventures, a vehicle for Adumo’s start-up businesses such as Switchpay.

“The acquisition aligns with several strategic objectives for Lesaka, including adding significant scale to our merchant acquiring proposition, providing access to a larger merchant customer base, and expanding our in-house technology stack. The acquisition helps to cement Lesaka’s position as an African fintech champion by enhancing our combined payment solutions,” says Steven Heilbron, Head of Mergers and Acquisitions, and Corporate Development at Lesaka.

Successfully navigating this transaction required multiple RMB teams to deliver an optimal solution for Lesaka. RMB Corporate Finance is serving as sole financial advisor to Lesaka, while RMB Sponsor Solutions continues to serve as the sole funder to Lesaka. The outcome is a holistic solution, demonstrating RMB’s solutionist thinking on a multi-disciplinary level to Lesaka.

“Despite challenging macroeconomic conditions, there is continued appetite for fintech opportunities in Africa. Through the acquisition of Adumo, Lesaka will be able to further their strategic aims and develop disruptive offerings to digitise cash in this market. We are pleased to be able to leverage our deep fintech and M&A expertise to navigate key complexities in the transaction and continue to partner with Lesaka in bringing inclusive banking solutions to more people,” says Arun Varughese, Head of Technology, Media and Telecoms at RMB.