Araxi CEO Bradley Sacks said the acquisition would significantly strengthen the group’s position in the fast-growing fintech and digital payments sector.
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Shareholders of fintech group Araxi, previously known as Capital Appreciation, have overwhelmingly approved the company’s acquisition of an 80% stake in Pay@ Group, paving the way for a major expansion of the group’s payments and financial technology capabilities across Southern Africa.
The company announced on Friday that the Competition Commission had also approved the transaction, which is expected to close during May.
Pay@ is regarded as one of South Africa’s leading payment aggregators, providing bill presentment and collection services across multiple payment channels including cash, card, electronic funds transfer (EFT), mobile money, digital wallets, vouchers and direct bank APIs.
The company processes more than R60 billion in transaction value annually and operates through an extensive network of over 9,000 retailer locations and more than 150,000 mobile point-of-sale devices. Its network also includes more than 15 digital payment platforms spanning banks, telecommunications companies, voucher providers and fintech firms.
Pay@ services a broad client base that includes pay-TV operators, money remittance companies, insurers, financiers and public sector organisations across South Africa, Namibia, Botswana, Zimbabwe, Eswatini and Lesotho.
Araxi CEO Bradley Sacks said the acquisition would significantly strengthen the group’s position in the fast-growing fintech and digital payments sector.
“Pay@’s success to date is evidenced by its processing of more than R60bn in transaction value over the last 12 months and also reflects its innovative approach to advancing financial inclusion and meeting consumers’ needs wherever they are,” Sacks said.
He added that innovation remained central to both companies’ strategies and said the combined business was well positioned to accelerate the rollout of integrated fintech solutions to enterprise clients.
“We are delighted with the strong support shown by shareholders for this transaction. Pay@ is an exceptional business with a highly respected team, strong market presence, and innovative payments platform,” Sacks said.
The acquisition is expected to complement Araxi’s existing payments division and broaden the combined group’s offering to enterprise clients across South Africa and the wider region.
Araxi said the transaction would also create opportunities for regional growth across Africa and potentially into international markets.
Pay@ is expected to benefit from Araxi’s access to capital markets, transformation credentials and payments expertise as the companies work together to introduce new digital financial solutions.
The combined entity believes the deal will create significant long-term value for clients, shareholders and employees while strengthening financial inclusion efforts across the region.
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