Capitec has agreed to pay R400 million to acquire 100 percent stake of the South African fintech company Walletdoc Holdings to boost its merchant payment services.
Capitec announced on Monday that it has entered into a binding agreement to acquire 100% of Walletdoc Holdings Proprietary Limited (" Walletdoc Holdings"), subject to regulatory approvals.
The statement mentioned that this acquisition marks a significant milestone in Capitec's strategy to offer leading secure payment acceptance to Capitec Business clients and simpler, more affordable e-commerce solutions to Capitec Personal Banking clients.
Walletdoc provides scalable, innovative payment gateway solutions for merchants, including online and in-app payments, digital wallets, Instant EFT, payment links, and real-time payments.
The statement claimed that Walletdoc's culture of innovation, efficiency, and client focus is closely aligned with Capitec's core values.
Walletdoc was founded back in 2015 in Johannesburg by Leonard Shenker and Dan Wagner, started as a bill payment app, has partnered with EasyPay and Absa to connect users with over 400 billers such as Eskom, Telkom and many others for easy digital payments.
“Capitec believes in the power of innovative technology to deliver smart, seamless payment solutions that benefit both merchants and clients. We are committed to making financial services more accessible and affordable for all South Africans, and we see this acquisition as an important step in building a more inclusive and competitive payments ecosystem,” said Graham Lee, CEO of Capitec.
“We are excited by the opportunity that this presents to our company to become a part of the Capitec Group and to contribute to their banking ecosystem. Our leadership team is enthusiastic about the synergies and growth opportunities that this acquisition will bring,” said Leonard Shenker, CEO of Walletdoc.
Capitec highlighted that the purchase consideration comprises a cash payment of R300 million (subject to customary adjustments upon conclusion of the transaction) and a deferred earn-out of R100 million, linked to the Capitec share price and payable in cash over three years, subject to the achievement of certain milestones over that period.
“Our purpose remains to make a meaningful difference in the financial lives of our clients, and to help South Africa grow. This is an important step in our journey, and we are excited to develop a world-class payments ecosystem over the next couple of years along with our 25 million personal and business banking clients,” concluded Lee.