Lesaka Technologies, the South African fintech firm, is set to acquire the digital-only institution Bank Zero Mutual Bank for R1.1 billion (approximately US$62 million).
Under the terms of the agreement, pending regulatory approval, Lesaka will obtain 100% of the issued ordinary shares of Bank Zero. In exchange, Bank Zero shareholders will receive 12% of the diluted shares and up to $5.1 million in cash.
Founded in 2018, Bank Zero boasts a deposit base of ZAR400 million and over 40,000 funded accounts across South Africa.
This acquisition marks a significant milestone for Lesaka as it aims to create a vertically integrated fintech platform by leveraging its digital infrastructure alongside Bank Zero’s banking license and customer base. The current Bank Zero executive team, including chairman Michael Jordaan and CEO Yatin Narsai, will remain in place temporarily.
Jordaan stated, “This transaction reflects a strategic partnership underpinned by long-term alignment, ensuring the continued involvement of all Bank Zero founders and management. We see strong symmetry in our vision for the combined platform’s future.” Lesaka chairman Ali Mazanderani referred to the acquisition as a “transformative event” in the company’s development.