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In a strategic move to solidify its presence in the South African private utilities market, Lesaka Technologies has completed the acquisition of Recharger, a prepaid electricity metering and payments business, for a sum of R507 million. This purchase not only represents Lesaka's entry into this niche market but also significantly enhances its existing alternative payments portfolio.
Recharger, which boasts over 460,000 registered prepaid electricity meters, provides a vital service enabling landlords to efficiently manage utility payments by allowing tenants to pay for their electricity usage in advance. This system offers tenants greater autonomy over their utility expenses and alleviates the administrative burden on landlords concerning billing and collections.
The acquisition was finalized through a payment scheme split into two tranches – the first, paid at closing, and the second scheduled a year later. The combination of R332 million in cash and R175 million in Lesaka stock underscores the value Lesaka attributes to Recharger's integration into its operations. Additionally, at the close of the deal, Lesaka will contribute R43 million exclusively for the repayment of a loan owed by Recharger to its previous owners.
Recharger will be incorporated into Lesaka’s thriving merchant division within the enterprise unit, reflecting a seamless integration strategy aimed at enhancing the group's revenue streams. The decision to absorb Recharger into its merchant division highlights Lesaka's strategic focus on enhancing its payment processing capabilities and expanding its market footprint.
Moreover, this acquisition is part of a broader pattern of strategic purchases by Lesaka, exemplified by recent acquisitions such as Adumo and Touchsides, and expanding its influence in sectors ranging from fintech to informal tavern industries across Southern Africa.
The acquisition is set to close in the third quarter of Lesaka’s 2025 fiscal year, pending regulatory approvals and customary closing conditions. As Lesaka continues to diversify and strengthen its portfolio, the Recharger deal stands out as a significant enhancement of its capabilities in the burgeoning private utilities and alternative payments sectors in South Africa.