FinTech: In South Africa, Nasdaq-Listed Net1 Acquires Connect Group For $242M

November 1, 2021 | FinTech, News, Takeovers and Buyouts
https://dailyalts.com/wp-content/uploads/2021/11/Connect.jpg

Both companies are South African fintechs.

Net 1 UEPS Technologies Inc (NASDAQ: UEPS) has agreed to acquire all of South African fintech Connect Group for US$242 million in a bid to expand its market and acquire scale as the biggest fintech platform in the country. (Seeking Alpha)

The acquisition will bring an estimated 1.4 million informal MSMEs into Net1’s addressable market. Connect already serves over 35,000 informal MSMEs. Secondly, the product offerings of the two companies are complementary and will improve economics through combination.

Net 1 will also benefit from the high growth of Connect’s business across the metrics of throughput, revenue, earnings and cash flow.

“Our vision is to transform Net1 into the leading South African fintech platform, offering payment processing and financial services to underserved merchants and consumers,” said Chris Meyer, Group CEO of Net1. “The acquisition of the Connect Group transforms our merchant offering, MSME footprint and growth trajectory, while also uniquely positioning us to be the South African market leader serving both merchants and consumers.”

Connect Group: Solid track record of growth

“I am very confident that this transaction fast tracks the combined businesses which together, now has the essential and differentiated building blocks required to deliver on the focused objective of being the leading South African fintech platform,” said Steven Heilbron, CEO of the Connect Group.

Connect’s offerings combined to generate net revenue of approximately ZAR 1.1 billion ($66.6 million), which represents a historic three-year compound annual growth rate of approximately 30%. Furthermore, the business delivered an historic three-year compound annual growth rate in EBITDA in excess of 40% for its financial year ended February 28, 2021.

Related Story: PayPal Looking To Acquire Pinterest At $70 Per Share

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/12/60148621_1291834164298938_7384402834688573440_n.jpg
FinTech: LatAm BNPL Provider Kueski Nabs $202M Series C Round
December 3, 2021     FinTech, News, Venture Capital

Kueski is one of the largest buy-now-pay-later (BNPL) and digital lenders in Latin America. It announced December 2 its close of a $202 million Series C debt and equity round….

https://dailyalts.com/wp-content/uploads/2021/12/bitcoin-gd3611bef8_640.jpg
Digital Assets: Renowned Investor Charlie Munger Sides With China On Its Crypto Ban
December 3, 2021     Digital Assets, News

Charlie Munger has shot off another broadside against bitcoin, endorsing China’s action in banning cryptos. A long-standing bitcoin skeptic, Munger was speaking in an interview for the Sohn Hearts &…

https://dailyalts.com/wp-content/uploads/2021/12/rider-img.jpg
Venture Capital: 15-Minute Delivery Startup JOKR Raises $260M Series B
December 3, 2021     News, Venture Capital

New York-based instant grocery delivery startup JOKR has become a unicorn within nine months of its launch and raised a $260 million Series B within five months of raising $170…

https://dailyalts.com/wp-content/uploads/2021/12/img-scaled.jpeg
Venture Capital: Porsche Buys A Stake In Sustainable Homes-Focused Startup 1KOMMA5°

Porsche, the German car maker, has taken a stake in Hamburg-based startup 1KOMMA5° through its venture finance arm, Porsche Ventures. The startup seeks to boost the rollout of presently decentralized…