Lesaka Technologies (Lesaka) is set to acquire digital Bank Zero for up to R1.1 billion, pending regulatory approvals. The deal will be settled through a combination of newly issued Lesaka shares and a cash component of R91 billion.
The deal will see Lesaka issue approximately 12% of its fully diluted shareholding to complete the transaction.
The acquisition is expected to enhance Lesaka’s strategic capabilities, allowing it to offer a full suite of banking services to its customer base. The company aims to leverage Bank Zero’s digital platform to unlock new growth opportunities, streamline operations, and drive product innovation across its divisions.
Lesaka, a fintech solutions provider that focuses on underserved customers and merchants in Southern Africa. Its offerings include transactional accounts, insurance, lending and software. The acquisition of Bank Zero - a fully digital bank launched in 2018 by former FNB executives - marks a significant expansion of its financial services ecosystem.
Bank Zero has reportedly surpassed 40 000 funded accounts and holds over R400 million in customer deposits. The bank is expected to be profitable in the first full financial year following the deal’s conclusion.
The transaction remains subject to regulatory approvals, including those from the South African Reserve Bank’s Prudential Authority, the Competition Commission and exchange control authorities.
Lesaka anticipates the acquisition will be earnings accretive and will support long-term balance sheet optimisation. Final transaction metrics will be disclosed in Lesaka’s annual results for the fiscal year ending 30 June 2025.
"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 neo-bank capability into our fintech platform. I am delighted to welcome the Bank Zero team to Lesaka as partners," concluded Lesaka Chairman Ali Mazanderani.
Lungile is the Digital Editor for TechAfrica, with a knack for storytelling, technology and innovative ideas. Working with TechAfrica, she takes simple ideas and turns them into amazing stories.
Lungile Msomi
