Payment solution provider Araxi has agreed to acquire the controlling stake in Pay@ Group for R1 billion ($64 million).
Pay@ is an end-to-end provider of integrated business-to-business payments solutions, which Araxi claims is the largest independent payments processing platform in South Africa.
Pay@ has over 9 000 retailer locations, 150 000+ mobile point-of-sale payment points and 15+ digital payment platforms (banks, telcos, voucher providers, and fintechs). It serves a wide range of enterprises, SMEs, and public sector organisations in South Africa, Namibia, Botswana, Zimbabwe, Eswatini, and Lesotho.
In a statement, Araxi said: “The company processed more than R60 billion in transaction value over the past 12 months, with a compound annual revenue growth of 22% in the last three years.”
Bradley Sacks, CEO of Araxi, asserts that by combining the two companies it will give customers a comprehensive end-to-end fintech offering.
He said: “With no overlapping products, Araxi and Pay@ together create a seamless platform that supports faster innovation, broader solutions, and greater long-term value.”
According to a company statement, the purchase consideration of R1 billion will be settled in cash, comprising R200 million from the Araxi Group's existing cash reserves and R800 million of senior debt already committed.
It went on say: “The transaction will require shareholder approval as it qualifies as a Category 1 acquisition under the JSE Listings Requirements. A circular will be distributed to Araxi shareholders in due course.”
Pay@ chief executive, Andrew Hardie, said: “We both have longstanding banking and corporate relationships and this transaction presents an opportunity to build on those.
“Our new relationship with Araxi also presents Pay@ with unique opportunities and opens new horizons to deliver significant value for our partners, clients, shareholders, and employees.”
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