Lesaka Technologies has finalised its acquisition of Recharger, a leading prepaid electricity submetering and payments business, in a deal worth R507 million. The transaction, structured as a combination of cash and shares, is being settled in two stages. The initial payment, completed on 3 March 2025, included R153 million in cash and 1.09 million Lesaka shares valued at R98 million. The remaining balance, consisting of R175 million in cash and shares worth R75 million, is due by 3 March 2026. Additionally, Lesaka extended a R43 million loan to Recharger to settle an outstanding debt at the time of closing.
This acquisition aligns with Lesaka’s broader strategy to strengthen its enterprise division and gain a foothold in South Africa’s private utilities sector. Recharger’s operations focus on enabling landlords to collect utility payments upfront, removing the complexities of billing and collections. The company currently manages over 460,000 registered prepaid electricity meters, positioning it as a key player in the sector. With this move, Lesaka aims to expand its alternative payment solutions and enhance its service offerings to businesses. This deal comes at a time when Lesaka has been actively increasing its market presence, having already doubled its customer base over the past four years.
Lesaka’s growth trajectory continues across both its merchant and consumer divisions. The company recently acquired fintech operator Adumo, adding 200,000 new customers to its books and expanding its total consumer base to 1.8 million. Notably, 1.6 million of these are social grant recipients, giving the company a 12% market share in that segment. Amid speculation that it could evolve into a full-fledged bank through its EasyPay platform, Lesaka reported revenue of R2.6 billion for the quarter ending December, meeting the upper range of its expectations. However, operating income fell to R14.2 million, down from R42.5 million the previous year, despite a 26% rise in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to R211.8 million. With the Recharger acquisition, Lesaka is positioning itself for further expansion in South Africa’s financial and utilities sectors.