Johannesburg,South Africa

Lesaka Technologies,a South African Fintech company has acquired a leading payment platform Adumo for R1.59 billion(US$85.9 million) and the transaction will be financed through cash and stocks.

Lesaka will give 17,279,803 shares of its common stock to Adumo shareholders and R232 million(US$12.5 million) in cash,which will be funded by internal cash resources and external financing.

According to Lesaka,Adumo's ultimate shareholders include Apis Growth Fund I,a private equity fund managed by Apis Partners LLP("Apis"),African Rainbow Capital("ARC"),the largest shareholder of Crossfin Holdings(RF) Pty Ltd("Crossfin"),as well as the International Finance Corporation and Adumo management.

The acquisition of Adumo will give Lesaka an upper hand in the competitive market because from now on will serve 1.7 million active consumers,119 000 merchants,and process over R250 billion per year.

The company said the Group will have over 3300 employees operating on the ground in 5 countries:South Africa,Namibia,Botswana,Zambia,and Kenya.The acquisition reinforces Lesaka's position as natural consolidator of Southern African Fintech and will enhance our strengths in both the consumer and merchant markets and follows the successful integration of the Connect and Kazang businesses and the recent acquisition of Touchsides.

According to Lesaka,Adumo serves approximately 23 000 active merchants.Its primary operations include card acquiring,integrated payments and reconciliation services processing more than ZAR 24 billion($1.3 billion) in throughput per year.The company's corporate card services cover over 245 000 card holders supporting payroll,incentives,rewards,and expense management.Adumo ISV,also known as GAAP,is the largest POS and Software-as-a-Service solutions provider to the hospitality sector in Southern Africa.

The leadership of involved parties seems happier with the acquisition and all are looking forward to work together once the deal is completed in the next few months.

"We are thrilled to welcome the Adumo team into the Group and Adumo CEO Paul Kent onto our executive leadership team.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 pending acquisition of Adumo is another significant milestone for Lesaka as we build the top fintech platform in Southern Africa,"said Lincoln Mali,CEO of Lesaka Southern Africa.

"This is a landmark deal for us.We are excited to welcome respected shareholders Apis and ARC.The augmentation of product offerings broadens our value proposition and enhances our ability to be disruptive and solve for our merchants' pain points,"said Steve Heilbron,Head of Corporate Development at Lesaka.

"We look forward to joining forces with the Lesaka team and contributing to the continued success of the Lesaka story.Our combined offering will significantly enhance the customer value proposition,and it is a natural fit considering our respective strengths and technology offerings,"said Paul Kent,Adumo Co-Founder and Chief Executive.

"We are very pleased to have found an exceptional home for the Adumo Group and see this next step in Adumo's growth journey as an incredibly exciting and logical evolution for the business,its customers and staff alike,"said Dean Sparrow,Chief Executive at Crossfin.

"Apis has enjoyed a very successful partnership with Adumo over the past few years,supporting the company with significant capital raises and coordinating key acquisitions.We look forward to being a part of the exciting new chapter with Lesaka,which we expect will bring continued success to the business,"said Matteo Stefanel and Udayan Goyal,Co-Founders and Managing Partners of Apis Partners.

During the process of the acquisition,the Lesaka had a financial and legal advisors from Rand Merchant Bank(a division of FirstRand Bank Limited) and Werksmans,while the Adumo and its shareholders were advised by Webber Wentzel.

Lesaka Technologies has a primary listing on NASDAQ(NasdaqGS:LSAK) and secondary listing on the Johannesburg Stock Exchange(JSE:LSK).