Lesaka to acquire Bank Zero, expanding fintech platform

Lesaka Technologies (JSE: LSK) announced it will acquire Bank Zero in a deal that will see Bank Zero's shareholders own approximately 12% of Lesaka's fully diluted shares, along with a ZAR 91 million cash component. Lesaka aims to integrate Bank Zero's digital banking infrastructure with its existing fintech platform, enhancing services for consumers, merchants, and enterprises. With Bank Zero's existing deposit base of over ZAR 400 million and more than 40,000 funded accounts, Lesaka anticipates operational synergies across its divisions and improvements to its balance sheet with more than ZAR 1.0 billion reduction in gross debt. The transaction is subject to regulatory approvals, with completion expected to be accretive to Lesaka's shareholders. Post acquisition Michael Jordaan will join the Lesaka board.