Lesaka Technologies in R507m Recharger deal

Following its successful acquisition of Adumo in October 2024.

Lesaka Technologies, the South African fintech company listed on the Nasdaq and JSE, announced on Wednesday an agreement to acquire Recharger, a leading locally based prepaid electricity submetering and payments business.

The R507 million transaction will be settled in two tranches, including R332 million in cash and R175 million in Lesaka common stock.

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Lesaka will also contribute R43 million to settle Recharger’s outstanding loan. The acquisition, valued at an enterprise value/Ebitda multiple of approximately ‘6.0 times’, is expected to close in the third quarter of fiscal 2025, pending regulatory approval.

Recharger, which services over 460 000 prepaid electricity meters, enables landlords to collect utility payments in advance, offering convenience to both landlords and tenants.

Lesaka said the acquisition will see the JSE-listed group integrate Recharger into its merchant division under the enterprise pillar, broadening its footprint in South Africa’s private utilities market and strengthening its alternative payment offerings.

Acquisitions strategy

The Recharger deal follows Lesaka’s acquisition of Adumo, SA’s largest independent payments processor, in October 2024 for R1.67 billion.

Through the acquisition of Adumo, Lesaka gained access to an extensive client base, including prominent multinational companies such as Coca-Cola, McDonald’s, and KFC.

This allowed Lesaka to expand its footprint into key industries like hospitality and corporate services, while enhancing its payment processing and point-of-sale capabilities. The deal further strengthened Lesaka’s position in serving small and medium enterprises, as well as corporate clients, by integrating Adumo’s advanced solutions into its fintech platform.

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With these acquisitions, Lesaka now serves 1.7 million consumers and 120 000 merchants, processing R270 billion annually across five African countries.

The group noted that the addition of Recharger will enable it to address gaps in utility billing and payment efficiency while continuing to innovate in digital and financial services, thereby consolidating its position as a leading fintech player in Southern Africa.

Lesaka’s share price

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