African fintech holding company Crossfin Technology Holdings (Pty) Ltd (Crossfin) has announced the conclusion of an agreement in terms of which company Adumo (RF) (Pty) Ltd (Adumo) will acquire Wirecard Solutions South Africa (Pty) Ltd (Wirecard SA) for an undisclosed amount.
The sale of Wirecard SA follows a rigorous investor process which drew interest from local, regional and international entities.
Anton Gaylard, chief operating officer at Crossfin, says they have been particularly excited to conclude the agreement for the Wirecard SA transaction.
“We had wanted to complement the Crossfin portfolio with a strong e-commerce offering since day one, but have found it challenging given the interest in that space and our positioning as a strategic value investor. The proposed acquisition of Wirecard SA is a perfect fit for the Adumo group of companies, which can now position itself as a truly omnichannel payments service provider catering to all verticals and tiers in the market.”
Wirecard SA is a wholly-owned subsidiary of Wirecard Technologies GmbH, a German payment processor and financial services provider that entered into insolvency in 2020.
As a leading e-commerce and payments provider in the region, Wirecard SA builds and maintains its own independent technology, which conforms to the local banking infrastructure and regulatory guidelines in South Africa and other countries in sub-Saharan Africa.
Hannalie Marsh, regional managing director at Wirecard SA, says they are thrilled to be part of Adumo after a challenging few months. “With the sale negotiation behind us, we can again focus on what we do best: supporting our merchants and exploring growth opportunities with our partners in the local market.”
“We look forward to working with Paul and the team following the implementation of the sale to unlock new value for merchants at a critical time in our industry.”
Paul Kent, CEO at Adumo, says the acquisition brings a strong e-commerce offering to Adumo at a time when interest in online retail is at an all-time high. “The acquisition unlocks access to world-class technology and an experienced team that understands the needs of local merchants and can support their growth.”
“Following implementation of the transaction, we will look to integrate Wirecard SA’s offering into our broader product portfolio to provide a 360-degree payments offering to customers across our African footprint.”
The Wirecard SA sale includes Wirecard Payment Services Namibia, and implementation of the transaction is subject to regulatory approvals being obtained.