Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK), a dual-listed fintech firm, has signed a definitive agreement to acquire Recharger (Pty) Ltd, a South African prepaid electricity submetering and payments business. This $28 million deal is part of Lesaka’s strategic acquisition spree aimed at strengthening its presence in Southern Africa’s fintech and private utilities markets.

The transaction, valued at ZAR 507 million, involves a combination of cash and equity payments, structured in two tranches. Lesaka will settle ZAR 332 million ($18 million) in cash and ZAR 175 million ($10 million) in common stock, with the share price calculated based on the volume-weighted average price of Lesaka stock over the three months preceding each tranche’s disbursal. Additionally, a ZAR 43 million ($2 million) loan repayment will be made on behalf of Recharger at closing.

The acquisition is expected to conclude in Lesaka’s third quarter of fiscal 2025, pending regulatory approvals and other customary conditions. The company anticipates the deal will achieve an enterprise value to EBITDA multiple of approximately 6.0 times, reflecting confidence in Recharger’s financial performance.

Recharger operates a base of over 460,000 registered prepaid electricity meters, catering to landlords and tenants. Its model simplifies utility payment collections for landlords while empowering tenants to manage their utility usage and costs. This acquisition positions Lesaka within South Africa’s private utilities space, complementing the company’s Enterprise pillar under its Merchant Division.

Building Momentum with Acquisitions

Lesaka’s acquisition of Recharger follows its earlier $85.9 million purchase of Adumo RF (Pty) Ltd in May 2024, a leading payment platform provider. The Adumo transaction, financed through cash and stock issuance, introduced prominent shareholders such as Apis Partners and African Rainbow Capital into Lesaka’s fold.

Adumo brought significant scale to Lesaka, expanding its reach to 1.7 million active consumers and 119,000 merchants across five countries in Southern Africa. Its annual transaction throughput exceeds ZAR 250 billion, supported by a workforce of over 3,300 employees.

This series of acquisitions consolidates Lesaka’s position as a leading fintech operator in the region, leveraging its expertise in integrating diverse businesses, including Connect, Kazang, and Touchsides.

Lesaka’s acquisition spree indicates the growing convergence of fintech and utility management services in Africa. The deal signals the rising importance of submetering technologies in addressing energy affordability and efficient usage — a critical issue amid rising electricity costs in South Africa.

As the transaction moves toward closure, industry analysts will watch closely to see how Lesaka navigates regulatory hurdles and integrates Recharger into its operations. If successful, the acquisition could pave the way for further consolidation in Africa’s fintech and utilities sectors, setting the stage for future innovation and competition.