The shareholders of South Africa’s Bank Zero are set to receive a 12% stake in Lesaka Technologies, worth roughly R1 billion ($56.3 million), plus up to R91 million ($5.1 million) in cash, as part of a deal that will see Lesaka fully acquire the zero-fee digital bank.
The R1.1 billion ($61.4 million) deal, pending regulatory approval, marks a strategic shift for Lesaka from fintech to fully licensed digital banking.
The agreement is based on an assumed Lesaka share price of ZAR 88.26 ($4.97). If the share price is higher when the deal is finalised, the cash portion will increase and the equity portion will decrease, maintaining the overall value. Bank Zero is expected to be profitable in its first fiscal year under Lesaka’s ownership.
Bank Zero, co-founded by former First National Bank executives Michael Jordaan and Yatin Narsai, launched in 2021 with a radical proposition: a zero-fee, fully app-based banking experience. By April 2025, it had attracted over R400 million (over $22 million) in deposits and over 40,000 funded accounts.
“Bank Zero was built from the ground up to deliver a secure, digital-first banking experience,” Narsai said. “Joining forces with Lesaka allows us to accelerate that mission at scale—reaching more customers, faster—while staying true to the principles that define who we are.”
The deal gives Lesaka access to Bank Zero’s banking license and tech-driven infrastructure, enabling it to offer a full suite of banking services, tap into new revenue streams, fund lending growth through customer deposits rather than bank debt, and potentially reduce a gross debt of over R1 billion (over $56 million).
“The acquisition of Bank Zero is a transformative event in Lesaka’s journey,” said Lesaka chairman Ali Mazanderani. “It enables us to better serve our consumers, merchants, and enterprise clients by embedding a trusted, well-engineered neobank capability into our fintech platform.”
Bank Zero chairman Michael Jordaan said the company is “confident the synergies between our digital banking infrastructure and Lesaka’s fintech reach will create sustainable value for all stakeholders.”
Jordaan will join Lesaka’s board post-deal, while Narsai will remain CEO. The founding team stays on with shareholding lockups ranging from 18 to 36 months.
Rand Merchant Bank advised on the deal, with Webber Wentzel & Rouse acting as legal counsel. If all conditions are met, Lesaka is expected to provide deeper financial details in its year-end results in September 2025.
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