Client challenge
Lesaka is a leading provider of payment solutions, financial services, transaction processing services and financial technology across multiple industries in several emerging economies. Connect Group was founded in 2006 and provides fintech solutions to about 44 000 small, medium and micro enterprises (SMMEs) in Southern Africa – many of which are in the informal sector.
As part of their transformational growth vision of becoming South Africa’s leading fintech platform, Lesaka looked at a 100% acquisition of the Connect Group – a profitable, high-growth and leading South African fintech company.
RMB's solution
RMB advised and provided Lesaka with a R2.35bn debt package with a five-year term facility to merge Lesaka and Connect Group and the remaining balance to be funded by existing Lesaka cash resources. RMB Corporate Finance Advisory used its expertise and knowledge of the business’ complementary product offerings to drive growth to advise Lesaka on the best method to provide the debt package.
Client enablement
The transaction will enable Lesaka to add nearly 44,000 micro, small and medium enterprises (MSMEs) in Southern Africa to its customer base. Many of these enterprises are in the informal sector and have historically been unserved by traditional financial services. Combining Connect Group's mostly informal client base with Lesaka’s existing fintech business and know-how will create a fintech group servicing the full value chain.
The acquisition also significantly expands Lesaka’s addressable market, merchant offering and footprint as it looks to build one of the leading fintech platforms in Southern Africa.
| Client | Lesaka |
|---|---|
| Size of the deal |
R4.8bn |
| Sector | Telecommunications, Media and Technology (TMT) |
| Capabilities | Corporate Finance Advisory |
| RMB's role | Sole adviser Sole funder |
| Country | South Africa |
