Lesaka Acquires Recharger to Enhance Utility Payment Solutions
Deal News | Nov 19, 2024 | Globenewswire
Lesaka Technologies, Inc. has entered into a definitive agreement to acquire Recharger (Pty) Ltd, a South African prepaid electricity submetering and payments business, for ZAR 507 million. The acquisition involves a two-tranche payment combining cash and Lesaka common stock. The deal aims to integrate Recharger into Lesaka's Enterprise pillar, providing access to the South African private utilities sector and enhancing the company's alternative payment offerings. The transaction is expected to close in Lesaka's third quarter of the fiscal year 2025, pending regulatory approvals and customary conditions. Lesaka, a fintech company focusing on financial inclusion, plans to further its reach in Southern Africa through this acquisition, aiming at a competitive EV/EBITDA multiple of approximately 6.0.
Sectors
- Fintech
- Utilities
Geography
- South Africa – Both Lesaka Technologies and Recharger operate primarily in the South African market.
Industry
- Fintech – Lesaka Technologies is a financial technology company providing a range of payment solutions.
- Utilities – Recharger deals in prepaid electricity submetering, a niche in the utilities sector.
Financials
- ZAR 507 million ($28 million) – Total acquisition price for Recharger by Lesaka, to be paid over two tranches.
- EV/EBITDA multiple of approximately 6.0 times – Estimated valuation metric for the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lesaka Technologies, Inc. | Acquirer | Company | A South African fintech company listed on NASDAQ and JSE, focusing on financial services for underserved consumers and businesses. |
| Recharger (Pty) Ltd | Target Company | Company | A South African business specializing in prepaid electricity submetering and payments. |