Lesaka Technologies acquires Bank Zero for R1.09 billion

The companies said the acquisition will be settled through a combination of shares, and R91m cash

- EDWARD WEST

LESAKA Technologies’ share price shot up 17.1% Friday morning after announcing it has entered into a R1.091 billion agreement to acquire 100% of South Africa's digital lender, Bank Zero Mutual Bank.

The companies said Friday the acquisition will be settled through a combination of new shares—such that the shareholders of Bank Zero will own about 12% of Lesaka's shares at the time of completion of the proposed transaction—and up to R91 million in cash.

"The acquisition of Bank Zero is a transformative event in Lesaka's journey, enabling us to better serve our consumers, merchants, and enterprise clients by embedding a trusted, well-engineered neobank capability into our fintech platform,’ said Lesaka chairman Ali Mazanderani in a statement.