South African fintech company Lesaka Technologies has announced a definitive agreement to acquire local digital bank Bank Zero for approximately R1.09 billion ($61.4 million). This strategic acquisition will be financed through the issuance of new shares, which will result in Bank Zero shareholders collectively owning around 12% of Lesaka’s fully diluted shares upon the deal's completion. The transaction was first reported on finance.yahoo.com on June 30, 2025.

Bank Zero, under the chairmanship of former FNB CEO Michael Jordaan, has demonstrated impressive independent growth, reporting annual increases of between 40% and 60% in its customer base, deposit volumes, and transaction activities. Jordaan confirmed to TechCentral that Bank Zero is proud to have achieved the status of a "South African unicorn" and is listed on both the Johannesburg Stock Exchange (JSE) and Nasdaq, indicating its strong market presence and potential.

While the long-term vision for the combined entity involves significant synergistic opportunities, the immediate focus is on overcoming administrative and regulatory hurdles. Jordaan emphasized that the merger projects, including the integration of new products and services, can only commence once the transaction becomes unconditional. This requires securing essential regulatory approvals from key bodies such as the Prudential Authority, the Competition Commission, and relevant exchange control authorities.

A core element of this acquisition's appeal is Bank Zero's keen interest in partnering with fintech companies, particularly those within Lesaka’s existing stable. This collaboration is expected to enable these fintech partners to broaden their offerings by extending banking services directly to their customers. Furthermore, the combined entity aims to leverage Lesaka's extensive footprint of merchant clients across Southern Africa to facilitate global payment capabilities, including efficient cross-border payment facilities.

The strategic rationale behind this merger is rooted in creating a powerful business model that unites a modern, agile digital bank with a robust, low-cost distribution network. Neobanks, like Bank Zero, possess a distinct competitive advantage over traditional banking institutions. They are less burdened by cumbersome legacy systems, which significantly reduces their operational costs and allows for more efficient and cost-effective delivery of banking services to customers, thereby enhancing overall market competitiveness.