Acquisition of the Connect Group

12 May 2022

By Lesaka

As Lesaka, we are on a mission to build and protect the financial well-being of our communities and our intention is to assist the vulnerable and underserved by providing widespread access to essential financial services.

On April 14, 2022, post-third-quarter end, we announced the closing of the Connect Group acquisition for a transaction consideration of ZAR 3.839 billion ($264 million), funded through cash of ZAR 2.139 billion ($147 million), the debt of ZAR 1.350 billion ($93 million) and deferred equity consideration of ZAR 350 million ($24 million).

This transformational acquisition uniquely positions the group to build a fintech platform, that will offer financial services and payment processing to both consumers (B2C) and merchants (B2B) across the formal and informal sectors in Southern Africa.

Steve Heilbron, CEO of the Connect Group, will join the company board effective 14 April 2022. Steve will take up the position of CEO of the Merchant Segment and be responsible for the integration of the Connect Group into Lesaka. The Connect Group’s focus on SMEs combined with the Lesaka EasyPay and point-of-sale enterprise solutions creates a powerful merchant offering covering the whole market. Capitalising on the growth opportunities in the merchant business remains a key priority.