JSE-listed Araxi has agreed to acquire an 80% stake in South African payments group Pay At (Pay@) and its affiliate International Payment Holdings Limited in a transaction valued at R1 billion, deepening consolidation in the country’s fast-growing digital payments market. The acquisition will be executed through Araxi subsidiary African Resonance, with R200 million funded in cash and R800 million raised through senior debt facilities. Of the total consideration, R975 million will be allocated to Pay@ and R25 million to IHPL.
Araxi, formerly known as Capital Appreciation Limited, has repositioned itself as a focused payments technology group, housing assets including African Resonance, Dashpay and Synthesis. The Pay@ acquisition expands its reach into enterprise-facing transaction processing at scale. Pay@, founded in 2007, operates what Araxi describes as the country’s largest independent network of payment processing channels, comprising more than 9,000 retail locations, 150,000 mobile point-of-sale endpoints and 15 digital payment platforms. The group services banks, telecommunications operators, voucher providers and fintech firms across South Africa and neighbouring markets including Namibia, Botswana, Zimbabwe, Eswatini and Lesotho.
The transaction also has ownership implications. Roughly 40% of Pay@ has been held by a US private equity investor. The buyout will result in the business becoming fully South African-owned, a shift Araxi says will simplify the shareholder base, reduce currency exposure and allow profits to be reinvested locally.
The acquisition takes place against a backdrop of sustained structural growth in digital transactions. Data from the South African Reserve Bank show continued migration from cash to electronic payments, with card, mobile and instant payment channels gaining share in both consumer and enterprise markets. In this context, asset-light, cash-generative platforms with established enterprise clients are increasingly attractive to consolidators seeking scale and cross-border expansion.
Financial performance underpins the valuation. For the 12 months ended February 2025, Pay@ reported revenue of R271.2 million, up 26.5% year-on-year, while net profit increased 34.2% to R91.3 million. EBITDA rose 30.3% to R130.2 million. For the six months to August 2025, revenue reached R158.8 million and net profit R49.7 million, indicating continued momentum. Net asset value stood at R682.1 million at the interim stage.
Araxi has framed the deal as strategically complementary, noting minimal overlap between its existing payments operations and Pay@’s enterprise platform model. The group emphasises a preference for technologies already demonstrating adoption, institutional client bases and near-term synergy potential. Management continuity is expected, with Pay@ executives set to remain in place and collaborate on further geographic expansion and service diversification.
The transaction constitutes a category 1 deal under JSE Listings Requirements and will require shareholder approval. If completed, it will strengthen Araxi’s position in a payments ecosystem increasingly defined by scale, interoperability and regional ambition.