Business
Net1 to Acquire the Connect Group
The Acquisition Significantly Expands Net1’s Addressable Market, Merchant Offering & Footprint as it Builds the Leading Fintech Platform in South Africa
About this update from Lesaka Technologies, Inc.
[{"type":"text","content":"The Acquisition Significantly Expands Net1’s Addressable Market, Merchant Offering & Footprint as it Builds the Leading Fintech Platform in South Africa Company to Host Conference Call to Discuss Acquisition at 8:30am ET JOHANNESBURG, South Africa, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS; JSE: NT1) (the “Company” or “Net1”) today announced it has signed a definitive agreement to acquire 100% of the Connect Group for a consideration of approximately ZAR 3.7 billion (the “Acquisition”), or $242.0 million at an exchange rate of $1: ZAR 15.22. The acquisition of the Connect Group, a profitable, high-growth and leading South African fintech company, is transformational for Net1 in its journey to becoming South Africa’s leading fintech platform. The Acquisition is expected to close in the quarter ending March 31, 2022, as it is subject to regulatory approval and satisfaction of customary closing conditions. Quote from Chris Meyer, Net1 Group CEO “Our vision is to transform Net1 into the leading South African fintech platform, offering payment processing and financial services to underserved merchants and consumers. The acquisition of the Connect Group transforms our merchant offering, MSME footprint and growth trajectory, while also uniquely positioning us to be the South African market leader serving both merchants and consumers,” said Chris Meyer, Group CEO of Net1. “Further, Connect Group advances our mission of financial inclusion by bringing into the Net1 fold a base of 44,000 MSMEs, many of whom are informal businesses. We welcome the Connect Group’s high-caliber team to Net1 and are confident that the combined group will significantly exceed the sum of the parts.” Quote from Steven Heilbron, Connect Group CEO “As a standalone business, Connect Group has become one of South Africa’s fastest growing fintech businesses serving MSMEs,” said Steven Heilbron, CEO of the Connect Group. “Having spent a lot of time with the Net1 management team and directors over the last year, I believe that the combined management teams of the Connect Group and Net1 will work very well together. I am very confident that this transaction fast tracks the combined businesses which together, now has the essential and differentiated building blocks required to deliver on the focused objective of being the leading Sou...