Shareholders of Bank Zero in South Africa to receive $5 million in assets and a 12% stake in the company's acquisition of Lesaka.
South Africa's Lesaka Technologies is set to make a significant move into the digital banking sector with the acquisition of Bank Zero, a zero-fee, app-based digital bank co-founded by Michael Jordaan and Yatin Narsai. The deal, valued at approximately R1.1 billion ($61.4 million), is pending regulatory approval.
The acquisition will see Lesaka Technologies acquire 100% of Bank Zero, with Bank Zero's shareholders receiving a 12% equity stake in Lesaka Technologies, valued at about R1 billion ($56.3 million) based on an assumed Lesaka share price of ZAR 88.26 ($4.97). In addition to the equity stake, Bank Zero shareholders will receive up to R91 million ($5.1 million) in cash. The final composition of the cash and equity components may adjust depending on Lesaka’s share price at deal closing; if Lesaka’s share price is higher, the cash portion increases and the equity portion decreases, keeping the total value consistent.
Bank Zero, which launched in 2021, had already attracted significant deposits and customer accounts by early 2025, with over R400 million (over $22 million) in deposits and over 40,000 funded accounts. The acquisition aims to embed a trusted, well-engineered neobank capability into Lesaka's fintech platform, enhancing services and growth opportunities.
Michael Jordaan, Bank Zero's chairman, is confident about the synergies between the digital banking infrastructure and Lesaka's fintech reach. He expressed optimism about the potential for growth and innovation that this partnership presents. Lesaka's chairman, Ali Mazanderani, considers the acquisition of Bank Zero a transformative event for the company.
Post-deal, Jordaan will join Lesaka's board, while Yatin Narsai, Bank Zero's CEO, will remain in his position. The founding team of Bank Zero will stay on, with shareholding lockups ranging from 18 to 36 months.
If all conditions are met, Lesaka is expected to provide deeper financial details in its year-end results in September 2025. This acquisition marks a strategic shift for Lesaka Technologies from fintech into fully licensed digital banking, positioning the company to offer a full suite of banking services, tap into new revenue streams, and potentially reduce a gross debt of over R1 billion (over $56 million).
Lesaka Technologies will acquire 100% of Bank Zero, integrating a robust and trusted neobank capability into their fintech platform, aiming to enhance services and growth opportunities. Michael Jordaan, Bank Zero's chairman, is optimistic about the synergies and growth potential this partnership presents, considering it a transformative event for Lesaka Technologies. The acquisition also positions Lesaka Technologies to offer a full suite of banking services, tap into new revenue streams, and potentially reduce their gross debt. This strategic shift marks Lesaka Technologies' entrance into fully licensed digital banking within the finance industry, using advanced technology.
