Lesaka scoops up Bank Zero for R1.09bn

Fintech group Lesaka Technologies, listed on the JSE and the Nasdaq, announced on Friday that it has acquired 100% of South African digital bank Bank Zero.

The deal, valued at up to R1.09 billion, will be settled through a combination of newly issued shares — equivalent to approximately 12% of Lesaka’s fully diluted shareholding — and up to R91 million in cash, subject to regulatory approvals.

Read: Lesaka Technologies in R507m Recharger deal
Listen: Lesaka returns to profit 

The transaction is expected to deliver operational and strategic benefits to Lesaka, including better end-to-end servicing of Lesaka’s customer base through a full suite of banking services, unlocking new opportunities for the group, accelerating product innovation, and streamlining operations across Lesaka’s business divisions.

Bank Zero, founded in 2018 by a group of former First National Bank executives, including chair Michael Jordaan and CEO Yatin Narsai, operates a digital-only, zero-fee banking model. The bank has over 40 000 funded accounts and more than R400 million in deposits, offering a secure app-driven platform for individuals and businesses seeking low-cost, tech-enabled banking services.

Lesaka provides fintech solutions focused on underserved consumers and merchants in Southern Africa. Its offerings include transactional accounts, insurance, lending, and software.

Lesaka chair Ali Mazanderani says the transaction is a “transformative event” in Lesaka’s journey, “embedding a trusted, well-engineered neobank capability into Lesaka’s fintech platform”.

Bank Zero’s leadership will remain in place following the acquisition. Jordaan will join Lesaka’s board of directors, while Narsai will continue as CEO of Bank Zero. Their shareholding in Lesaka will be subject to lock-up agreements ranging from 18 to 36 months.

‘More customers, faster’ 

Commenting on the deal, Jordaan notes that combining [Bank Zero’s] digital banking infrastructure and Lesaka’s fintech reach will create sustainable value for all stakeholders.

Narsai adds that the partnership allows Bank Zero to reach more customers faster while staying true to its principles.

The acquisition is subject to approvals from the SA Reserve Bank’s Prudential Authority, the Competition Commission, and exchange control.

Lesaka expects the transaction to be earnings accretive and supportive of long-term balance sheet optimisation, with Bank Zero expected to be profitable in the fiscal year following the deal’s completion.

Full details regarding the financial metrics of the proposed transaction will be made available at the posting of Lesaka’s results for the fiscal year ended 30 June 2025, which is expected to be on or about 4 September 2025.

Listen/read: Fintech Lesaka to acquire Adumo in R1.6bn deal [May 2024]