Araxi Limited is set to acquire an 80% stake in Pay@ Group for $62 Million, a landmark deal creating a dominant fintech entity in Southern Africa. This strategic move will merge Araxi's advanced digital technologies with Pay@'s extensive physical payment network. The consolidation aims to deliver a comprehensive, end-to-end payment solution across the region.
Details of the Landmark Transaction
The R1 billion transaction will be executed by Araxi's subsidiary, African Resonance, funded through $12.4 million in cash and $50 million in debt. This financing structure ensures Araxi's post-acquisition gearing levels remain modest and serviceable through operational cash flows. The deal is classified as a Category 1 acquisition under JSE regulations.
A key aspect of the deal is simplifying Pay@'s shareholder base by buying out a US private equity firm. This on-shoring strategy reduces currency volatility exposure and ensures profits are reinvested locally. The acquisition is contingent upon receiving approvals from Araxi's shareholders and relevant regulatory bodies.
A Union of Technology and Distribution
The acquisition's rationale lies in the synergy between the two complementary businesses. Araxi contributes a portfolio rich in high-tech software, including cloud solutions and artificial intelligence. In contrast, Pay@ provides the critical infrastructure with its vast distribution network for bill payments.
Araxi CEO Bradley Sacks emphasized that the union combines two leaders from different segments of the payments ecosystem. By leveraging these strengths, the group intends to forge a powerful, seamless platform for its enterprise clients. This integration is designed to accelerate innovation and enhance long-term value for stakeholders.
Profiling the Profitable Pay@ Group
Established in 2007, Pay@ is a vital part of South Africa's payment infrastructure, processing over $3.7 billion in transactions annually. The company's network includes over 9,000 retail locations and 150,000 mobile POS endpoints. Its platform serves a wide range of enterprise clients with a proven 99.99% efficacy rate.
Pay@ stands out for its strong financial health and disciplined growth, operating without any third-party debt. The company is highly profitable and cash-generative, having funded its expansion entirely through its own operations. For its latest fiscal year, it reported a net profit of R91.3 million, up 34.2%.
Expansion and the Path Forward
The combined entity is well-positioned for significant regional expansion across the Southern African Development Community. Pay@ already operates in several neighboring countries, providing a solid foundation for further growth. The retention of Pay@'s experienced management team is key to driving this next phase of development.
Looking ahead, the group plans to accelerate Pay@'s innovation by integrating Araxi's AI and technology stack. New growth avenues include e-commerce, software-as-a-service models, and expanded funds transfer services. The transaction is expected to close by June 30, 2026, pending final approvals.
This $62 Million acquisition is a transformative event for the South African fintech sector, creating a formidable, locally-owned payments powerhouse. The deal merges digital innovation with extensive physical reach, signaling a new phase of market maturity. It underscores a trend where domestic champions are now leading industry-shaping consolidations.