Visi Money
TLDR:
- Fintech Lesaka Technologies has acquired Touchsides, a data analytics and merchant services company, from Heineken.
- The acquisition is expected to expand Kazang’s presence in South Africa’s informal tavern market.
South African fintech company Lesaka Technologies has announced that it will acquire Touchsides, a data analytics, insights, and merchant services company, from Heineken. Kazang, a subsidiary of Touchsides, provides cash and digital solutions to merchants in Southern Africa’s informal economies. The acquisition is said to be complementary to Kazang and will extend its reach in South Africa’s licensed tavern market, which consists of approximately 45,000 establishments. Lesaka also plans to monetize the data and insights gathered from Touchsides’ point-of-sale terminals through partnerships with various clients, including fast-moving consumer goods companies, wholesalers, and financiers.
Lesaka already owns Connect Group and will fund the acquisition of Touchsides with its internal cash generation. The transaction is expected to close in March 2024, pending customary closing conditions. As part of the deal, Heineken’s South African operating business has signed a long-term renewable agreement with Touchsides to access its tavern data and services.
Overall, the acquisition of Touchsides will allow Lesaka to expand its presence in the South African fintech market and leverage the data monetization capabilities of Kazang. Additionally, the acquisition presents significant growth opportunities in South Africa’s informal tavern business.
