In the last 18 months, local and international buyers have acquired five South African financial technology companies for billions of rands.
These include biometric FICA compliance provider DocFox, payments processor Adumo, travel industry revenue management software company Ratality, Bank Zero, and iKhokha.
Although the value of the Ratility acquisition was undisclosed, the four transactions with disclosed values were worth an estimated R5.54 billion.
JSE and Nasdaq–listed Lesaka Technologies, formerly Net1 UEPS, was behind two of the acquisitions: Adumo and Bank Zero.
In October 2024, it acquired Adumo, a payments platform headquartered in Cape Town, for $85.9 million (R1.5 billion). Adumo owns point-of-sale giant GAAP, which it acquired in 2021 for an undisclosed sum.
Last month, Lesaka announced that it acquired Bank Zero for R1.09 billion, pending regulatory approvals. Bank Zero is an app-based digital bank for individuals and businesses in South Africa.
It was established seven years ago by former FNB CEO Michael Jordaan, banking innovator Yatin Narsai, and five other co-founders. It launched in 2021.
Lesaka Technologies is a South African financial technology company founded by Serge Belamant in 1989. Belamant developed the company’s basic technology after leaving Saswitch.
The company primarily focuses on financial inclusion, offering financial services to previously underserved communities and merchants.
U.S. financial services platform provider nCino announced its $75-million (R1.3 billion) acquisition of DocFox in March 2024, with the deal going through in May of that year.
DocFox provides digital know-your-customer (KYC) verification and compliance services, known as FICA in South Africa, so named for the Financial Intelligence Centre Act.
Founded in 2013 by Ryan Canin, Richard Cohen, and Gian Cantarin, DocFox uses biometrics to perform identity verification. Following the acquisition, it rebranded to nCino KYC Africa.
Also in May 2024, Canadian company Busbud announced its acquisition of South African travel operator revenue management system provider Ratality.
Ratality was founded in 2017 by Arend de Waal, Colin Patrick, and Niel van Schalkwyk. The terms of its deal with Busbud were undisclosed.
Most recently, Nedbank entered into a binding agreement to acquire iKhokha in an all-cash deal for approximately R1.65 billion, subject to certain adjustments upon conclusion.
The acquisition will see iKhokha become a wholly owned subsidiary of Nedbank, while continuing to operate under its own brand and leadership team.
iKhokha is best known for its affordable card payment terminals and offers a suite of accessible SME cash advance, payment, and business management tools.
Source:My Broadband
