Lesaka To Acquire Payment Platform Adumo For ~$85.9M; Settled Through Issuance Of 17,279,803 Shares Of Lesaka Common Stock To Adumo's Current Ultimate Shareholders Plus $12.5M In Cash
Portfolio Pulse from Benzinga Newsdesk
Lesaka Technologies, Inc. (LSAK) has announced the acquisition of Adumo for approximately $85.9 million, to be settled with 17,279,803 shares of Lesaka common stock and $12.5 million in cash. The acquisition aims to strengthen Lesaka's position in the Southern African fintech market, expanding its ecosystem to serve 1.7 million consumers and 119,000 merchants. The deal, expected to close in Q3 2024, is subject to shareholder and regulatory approvals. Adumo's operations will enhance Lesaka's product offerings in card acquiring, integrated payments, and SaaS solutions, particularly in the hospitality sector.
May 07, 2024 | 9:14 pm
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Lesaka Technologies' acquisition of Adumo for $85.9M, paid in stock and cash, aims to solidify its fintech presence in Southern Africa, serving more consumers and merchants.
The acquisition of Adumo by Lesaka is expected to have a positive short-term impact on LSAK's stock price due to the strategic expansion in the fintech sector, enhancing its product offerings and market reach. The deal's structure, involving both stock and cash, along with the premium paid over the volume-weighted average price, indicates Lesaka's commitment to this acquisition and the potential for growth it sees in Adumo. The positive market reaction is anticipated, considering the expansion of Lesaka's ecosystem and the strengthening of its position as a fintech consolidator in Southern Africa.
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