Lesaka Technologies (Nasdaq: LSAK; JSE: LSK) has announced a definitive agreement to acquire 100% of Bank Zero, a South African digital bank co-founded by former FNB CEO Michael Jordaan. The deal, valued at R1.1 billion, will be settled through a combination of newly issued Lesaka shares (giving Bank Zero shareholders a 12% stake) and up to R91 million in cash.
“Our partnership with Lesaka creates long-term value, combining digital banking innovation with fintech scale,” said Jordaan, Bank Zero Chairman.
The transaction remains subject to standard closing conditions and regulatory approvals, including clearance from the South African Reserve Bank’s Prudential Authority, the Competition Commission, and Exchange Control authorities.
Launched in 2018, Bank Zero operates as a zero-fee digital bank, offering retail and commercial banking services through a secure, app-based platform. As of April 2025, it held over R400 million in deposits and served more than 40,000 funded accounts across South Africa.
Strategic Benefits for Lesaka
The acquisition aligns with Lesaka’s strategy to build a fully integrated fintech platform. By incorporating Bank Zero’s digital banking infrastructure, Lesaka aims to:
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Enhance customer offerings with a full suite of banking services
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Unlock operational synergies and new revenue opportunities
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Strengthen lending capabilities through customer deposits
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Reduce gross debt by over R1 billion post-transaction
“This acquisition is transformative, allowing us to integrate trusted digital banking into our fintech ecosystem and better serve our customers,” said Ali Mazanderani, Lesaka Chairman.
Leadership & Shareholder Changes
Upon completion, Bank Zero’s key shareholders—including Michael Jordaan and CEO Yatin Narsai—will collectively hold a 12% stake in Lesaka. Jordaan will join Lesaka’s board, while Narsai will remain CEO of Bank Zero. Both executives bring extensive banking experience, having previously held leadership roles at FNB.
Yatin Narsai, Bank Zero CEO, said: “Joining Lesaka accelerates our mission to disrupt traditional banking while maintaining our customer-first approach.”
Lesaka expects the deal to close following regulatory approvals, with Bank Zero projected to become profitable in the next fiscal year. Further financial details will be disclosed in Lesaka’s FY2025 results, expected by September 4, 2025.
