Here is the rewritten content in a provocative and controversial manner:
Lesaka’s Sneaky Bid to Crush Competition
The Competition Commission has given the green light for Lesaka Technologies to buy Adumo, a payments platform, for a whopping R1.6 billion. But is this deal a clever ploy to crush competition and dominate the market?
The fintech group, listed on the Nasdaq and JSE, has announced that it will acquire Adumo RF for R1.6 billion in cash and equity. The cash component of the deal is a mere R232 million, funded by internal cash resources and external financing. But what’s the real story behind this deal?
Adumo’s shareholders, including Apis Growth Fund I, African Rainbow Capital, the International Finance Corp, and Adumo management, will be walking away with a pretty penny. But what about the merchants who rely on Adumo’s services? Will they be left high and dry once Lesaka takes control?
Adumo serves 23,000 active merchants, processing some R24 billion in throughput per year. Its corporate card services cover over 245,000 cardholders, supporting payroll, incentives, rewards, and expense management. But will Lesaka’s acquisition of Adumo lead to a monopoly in the market?
The Competition Commission claims that the deal is unlikely to substantially lessen or prevent competition in any market. But what about the public interest concerns? Don’t consumers deserve to know what’s happening behind the scenes?
Adumo CEO Paul Kent will join Lesaka’s executive leadership team following the conclusion of the deal. But will he be able to keep his integrity intact once he’s working for a company with a reputation for aggressive business tactics?
This deal has the potential to shake the foundations of the fintech industry. Will Lesaka’s acquisition of Adumo lead to a concentration of power and a lack of competition in the market? Only time will tell.
Read next: Lesaka’s shady deals: What’s really going on behind the scenes?
