Table of Contents
Key Points
- Lesaka Technologies acquires Recharger for $28 million, expanding its presence in South Africa's private utilities market and fintech sector.
- The acquisition includes R43 million ($2 million) to settle Recharger's loan and will close by Q3 2025, pending regulatory approval.
- Supported by African Rainbow Capital, Lesaka continues expanding with acquisitions like Adumo and Touchsides, strengthening its fintech portfolio.
Lesaka Technologies, a fintech firm backed by African Rainbow Capital (ARC)—the investment group led by South Africa’s first Black billionaire, Patrice Motsepe—has acquired Recharger, a leader in prepaid electricity submetering and payments, for $28 million.
The deal, which strengthens Lesaka’s position in the fintech sector, involves the purchase of all Recharger's shares. It follows Lesaka’s recent acquisition of payment tech company Adumo.
The transaction, valued at R332 million ($18 million) in cash and R175 million ($10 million) in Lesaka stock, will be completed in two phases—the first payment at closing and the second a year later.
Strategic entry into South Africa's private utilities market
As part of the deal, Lesaka will also inject R43 million ($2 million) to settle Recharger’s existing loan. The transaction, valued at an enterprise value-to-EBITDA multiple of approximately 6.0 times, is slated to close by the third quarter of fiscal 2025, pending regulatory approval.
Recharger will be integrated into Lesaka’s Merchant Division, under its Enterprise pillar, marking a strategic move into South Africa’s private utilities sector. This acquisition will also enhance Lesaka's portfolio of alternative payment solutions.
Serving over 460,000 registered meters, Recharger facilitates prepaid utility payments for landlords, simplifying tenant billing and collections.
Motsepe’s strategic influence in fintech
Lesaka, listed on NASDAQ and JSE, provides a range of fintech services, including banking, lending, insurance, and bill payments. With a market cap of $413.5 million, the company continues to drive digital commerce transformation in its target markets.
Motsepe’s African Rainbow Capital (ARC) continues to support Lesaka’s growth, expanding its fintech portfolio and enhancing his influence in the sector. In addition to his indirect stake in Lesaka, Motsepe holds a significant stake in TymeBank, South Africa’s leading digital bank, and is diversifying his wealth from mining, which makes up the majority of his $2.9 billion fortune.
Lesaka’s recent acquisitions, including a R1.59 billion ($85 million) deal for Adumo and an agreement to acquire Touchsides, a South African data analytics and merchant services firm, further strengthen its position in the payments sector. This expansion highlights the company’s strategy to capitalize on Southern Africa’s growing fintech ecosystem.
