Lesaka Technologies

Lesaka Technologies
Nasdaq: LSAK (formerly UEPS and NT1)
Company typePublic
FounderSerge Belamant
Headquarters
Johannesburg
,
South Africa
Key people
Ali Mazanderani, Executive Chairman[1]
Websitelesakatech.com

Lesaka Technologies (formerly Net 1 UEPS Technologies) is a South-African financial technology company that is listed on the NASDAQ (Nasdaq: LSAK) and Johannesburg Stock Exchange (JSE: LSK).[2][3] Lesaka’s primary focus is on financial inclusion, offering financial services to previously underserved communities and merchants.[4]

The company has managed Botswana and South Africa's social grant payment system up to 2018.[5][6] The company is headquartered in Johannesburg.[7]

History

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It was founded by Serge Belamant who also developed its basic technology. He left the company in 2017 under a "separation agreement" filed with the Securities and Exchange Commission for $8 million.[8] Herman Kotze, the company's chief financial officer, became its CEO after Belamant's departure.[9] The company became known for products such as EasyPay and Cash Paymaster Services (CPS).[6]

In 2020, Value Capital Partners invested R580 million into the company and began a process of redefining the strategy, appointing a new board and management team, and strengthening the company’s corporate governance.[10][11]

In 2021, the company appointed Chris Meyers as its new CEO.[12]

In 2022, Net1 rebranded as Lesaka Technologies, which coincided with the R3.7 billion acquisition of the Connect Group.[13]

Meyer stepped down as Lesaka’s CEO in 2023.[14] Upon his departure from the company, Ali Mazanderani was appointed as executive chairman and former chairman Kuben Pillay became lead independent director.[14]

Acquisitions

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In 2010, the company announced that it would acquire KSNet, a Korean payment processor, for $233 million.[15] Net1 expanded into the United Kingdom with the acquisition of Zazoo in 2015.[16] It reached an agreement with MobiKwik, a mobile phone based payment system and digital wallet based in India, in 2016.[17]

Net1 sold KSNet to Stonebridge Capital and Payletter for $237 million in March 2020.[18] In September 2020, Cash Paymaster Services (CPS), a subsidiary of Net1, went into liquidation. It had been in a previous legal dispute over deductions from grant payments for micro loans‚ airtime and other financial services.[19][20]

In March 2022 Net1's R3.7 billion 100% acquisition of the Connect Group was approved by the South African Competition authorities.[21] The transaction was first announced in November last year, when Net1 signed a definitive agreement to acquire 100% of the Connect Group.[22]

In February 2024 Lesaka announced it was acquiring Touchsides, a platform-as-a-service and software-as-a-service solutions provider to licensed tavern outlets.[23]

In May 2024, Lesaka Technologies acquired Adumo, a payment platform headquartered in Cape Town, for $85 million.[24]

References

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  1. ^ "Fintech investor Ali Mazanderani is Lesaka Technologies new chairperson". cio-sa.co.za. 5 December 2023. Retrieved 2024-03-30.
  2. ^ "Lesaka Technologies Inc (LSAK) Surpasses Q2 FY24 Guidance with S". www.gurufocus.com. Retrieved 2024-03-30.
  3. ^ "Lesaka Technologies Inc (LSK) Stock Price & News". Google Finance. Retrieved 2024-03-30.
  4. ^ "Lesaka Technologies – Championing financial inclusion in informal communities". businesstech.co.za. 7 Jun 2023.
  5. ^ Admin (March 2018). "Plot thickens in P6bn Orphans, Destitute Fund Scandal". Botswana Gazette. Retrieved 2023-01-16.
  6. ^ a b "EasyPay owner Net1 rebrands as Lesaka Technologies". news24.com. Retrieved 2024-03-30.
  7. ^ "Net1 must comply with 'spirit' of top court's order, Allan Gray urges". Business Day. 17 March 2017.
  8. ^ "Net1 to pay outgoing CEO Serge Belamant a cool R263-million". Mail & Guardian. 30 May 2017.
  9. ^ "Altron CFO Alex Smith quits to join Net1". Tech Central. 1 December 2017.
  10. ^ "Value Capital Partners acquires stake in under-fire Net1". ITWeb. 2020-04-28. Retrieved 2024-03-30.
  11. ^ "Value Capital Partners takes R580m stake in Net1". Moneyweb. 2020-04-28. Retrieved 2024-03-30.
  12. ^ Zourmpanos, Yiannis (August 2, 2023). "Lesaka Technologies: A Fintech Turnaround Case". Seeking Alpha. Retrieved March 30, 2024.
  13. ^ "Net 1 UEPS rebrands as Lesaka". iol.co.za. May 12, 2022. Retrieved March 30, 2024.
  14. ^ a b "Lesaka CEO Chris Meyer to step down". TechCentral. 2023-12-05. Retrieved 2024-03-30.
  15. ^ "Net1 to buy 99% of Korean payment processor KSNet". Finextra. 16 September 2010.
  16. ^ "Net1 Launches ZAZOO in the UK" (Press release). Globe Newswire. 5 February 2015.
  17. ^ "Net 1 and MobiKwik enter into subscription agreement in India". Telecomlead. 26 August 2016.
  18. ^ "Net 1 UEPS Tech To Sell KSNET For About $237 Mln". Nasdaq. 27 January 2020.
  19. ^ "New Net1 boss defends Belamant's $8- million golden handshake". Sunday Times. 2 June 2017.
  20. ^ "Cash Paymaster Services to go into liquidation". Moneyweb. 30 September 2020.
  21. ^ "Net1 gets green light for R3.7-billion Connect deal". TechCentral. 11 March 2022.
  22. ^ "Net1 gets green light for R3.7-billion Connect deal". TechCentral. 2022-03-11. Retrieved 2024-03-30.
  23. ^ "Lesaka buys Touchsides from Heineken in taverns push". TechCentral. 2024-02-06. Retrieved 2024-04-29.
  24. ^ "Lesaka Technologies to Integrate Adumo in $85 Million Deal". Fintech Industry Examiner. 2024-05-08.
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