Media Coverage
Lesaka’s shares jump on deal to acquire Bank Zero for R1.1bn
27 Jun 2025
By Mudiwa Gavaza | Business Day

The deal will be concluded by way of new shares and cash
Shares in fintech group Lesaka Technologies jumped as much as 17% after it announced it has signed a deal to acquire digital lender Bank Zero Mutual Bank for R1.1bn in a move that underscores its ambition to challenge SA’s traditional banking sector.
In early trade on Friday Lesaka’s share price jumped to as high as R82, before pulling back by the end of the day to close 7.4% higher at R74.21.
“The combination of Bank Zero’s digital banking infrastructure and its operational banking licence, together with Lesaka’s fintech and distribution platform, is intended to transform the way Lesaka is able to conduct business in the future, offering key financial, strategic and regulatory benefits,” the listed financial technology group said.
The deal will be settled through a combination of newly issued shares — shareholders of Bank Zero will own about 12% of Lesaka’s fully diluted shares at the time of completion of the proposed transaction, estimated at R1bn ($56m) — and up to R91m in cash.

he transaction was agreed to based on an assumed Lesaka share price of R88.26 ($4.97) and the fully diluted share count.
This implies a transaction consideration of up to R1.091bn.
Once the transaction is complete, Bank Zero chair Michael Jordaan will join Lesaka’s board, while Yatin Narsai will continue as Bank Zero CEO.
“The broader Bank Zero leadership team will remain in their current roles, ensuring continuity and integration,” said the company.
Jordaan and Narsai are both shareholders of Bank Zero and will sell their stock as part of the deal.
Bank Zero is among a group of challengers, including Discovery Bank, Old Mutual Bank, African Bank and TymeBank, that have sought to disrupt the country’s banking sector in recent years.
Founded in 2018, the mobile-only, app-based bank has a zero-fee banking model, offering both retail and commercial banking services. By the end of April 2025, it had a deposit base of more than R400m, and more than 40,000 funded accounts across SA.
Lesaka chair Ali Mazanderani said: “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.”
Lesaka sais the transaction would benefit its shareholders, with Bank Zero expected to be profitable in the fiscal year after completion of the transaction.
“I am delighted to welcome the Bank Zero team to Lesaka as partners,” Mazanderani said.
The JSE- and Nasdaq-listed company, formerly Net1 UEPS Technologies, consists of two divisions: a merchant unit and a consumer segment. The consumer unit focuses on products such as unsecured credit, transactional banking, microinsurance and value-added services through the EasyPay platform. By leveraging customer deposits, as opposed to normal bank loans, the group is hoping to use the Bank Zero deal reduce its gross debt by R1bn.
“This transaction reflects a strategic partnership underpinned by long-term alignment, which will result in the continued involvement of all Bank Zero founders and management. Our belief in the combined platform’s future is clear and we see strong symmetry in our vision,” Jordaan said.
“There is a strong international precedent for fintechs that have acquired banking capabilities to deliver more integrated, compliant and capital-efficient financial services. We are confident that the synergies between our digital banking infrastructure and Lesaka’s fintech reach will create sustainable value for all stakeholders.”
Lesaka has been hard at work integrating the various businesses it has acquired recently, such as Connect Group, Touchsides, Adumo and Recharger.