Lesaka Technologies to Acquire Bank Zero in Strategic Fintech Merger
Deal News | Jun 26, 2025 | Globenewswire
Lesaka Technologies, a leading South African fintech firm, has announced a definitive agreement to acquire Bank Zero, a digital bank pioneering a zero-fee banking model in South Africa. The transaction is valued at up to ZAR 1,091 million ($61.4 million), comprising both cash and newly issued shares, which will result in Bank Zero's shareholders owning approximately 12% of Lesaka. The merger promises a transformative impact on Lesaka's business operations, integrating Bank Zero's digital banking capabilities with Lesaka's fintech and distribution platform. The deal is subject to regulatory approvals and is anticipated to enhance Lesaka's financial profile by optimizing its balance sheet and reducing gross debt by up to ZAR 1 billion. The acquisition will also involve a reshuffling of Lesaka's board and shareholding structure, with Bank Zero's leadership continuing in their roles post-transaction. This strategic move aligns with Lesaka's goal of building a vertically integrated fintech platform to better serve its consumer base with comprehensive financial services.
Sectors
- Financial Services
- Fintech
Geography
- South Africa – Both Lesaka Technologies and Bank Zero are based in South Africa, and the merger will predominantly affect the South African financial landscape.
Industry
- Financial Services – The article is focused on a merger between Lesaka Technologies and Bank Zero, both operating in the financial services sector with offerings in fintech and digital banking.
- Fintech – Lesaka is a fintech company that provides various financial solutions, and the acquisition of Bank Zero is expected to enhance its fintech capabilities with digital banking services.
Financials
- ZAR 1,091 million ($61.4 million) – Total transaction value for the acquisition of Bank Zero.
- ZAR 91 million ($5.1 million) – Cash portion of the transaction consideration.
- ZAR 1 billion – Potential reduction in Lesaka's gross debt post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lesaka Technologies, Inc. | Acquirer | Company | A South African fintech company providing financial services and software solutions. |
| Bank Zero Mutual Bank | Target Company | Company | A South African digital bank with a zero-fee banking model, offering retail and commercial services. |
| Michael Jordaan | Chairman of Bank Zero | Person | Chairman and co-founder of Bank Zero, with extensive experience in the financial sector, including as CEO of First National Bank. |
| Yatin Narsai | CEO of Bank Zero | Person | Chief Executive Officer and co-founder of Bank Zero, with a background in retail banking at First National Bank. |
| Rand Merchant Bank | Financial Advisor to Lesaka | Company | Serving as the financial advisor to Lesaka during the acquisition process. |
| Webber Wentzel & Rouse | Legal Advisors to Lesaka | Company | Providing legal advisory services to Lesaka for the acquisition. |
| Prudential Authority | Regulatory Body | Government | Part of the South African Reserve Bank, responsible for granting transaction approvals. |