Following the transaction, DPO Group will be providing services to over 100,000 merchants across 18 African markets.
Kenya's DPO Group acquires PayFast, one of the largest payment processors in South Africa
The Nairobi headquartered DPO Group has acquired PayFast, one of the largest payment processors in South Africa.
Offer Gat, Chairman and co-founder of DPO Group, said, “PayFast is a natural fit for DPO Group and this deal strategically follows our acquisitions of PayGate, VCS, Paythru and SiD since 2016.”
“This deal, which we believe is the largest acquisition by a PSP in Africa, reinforces our position as a leading PSP on the continent and is an important step forward in our strategic growth across Africa. The combination of DPO Group and PayFast will greatly increase the ability of merchants on our platform to do business with their clients both within and outside of Africa. Finally, it will allow DPO to continue to improve merchant services, allowing more merchants to transact more broadly at a lower cost.”
Jonathan Smit, Managing Director and co-founder of PayFast, said, “Integrating our processing and facilitation capability with the range of online payment services offered by DPO and its huge geographical reach across 18 countries in Africa is an extremely exciting opportunity for both companies. The coming together of two leading online payment specialists will have a positive impact on the African payments landscape and create better future career opportunities for our current and future talent. I am excited to be working with the DPO team in growing the business further in the years ahead.”
Terms of the deal
The deal, according to a statement made available to Business Insider SSA, was executed through a mix of shares and cash, with the PayFast management team remaining key shareholders in DPO Group.
The Group’s services will be available on a single platform to both DPO Group and PayFast merchants significantly improving their capacity to do business not only across Africa but also worldwide.
“PayFast has the broadest range of shopping cart integrations in Africa and it's Instant EFT service provides consumers with a secure alternative for making online payments. The integration of PayFast into DPO’s services will increase the range of payment options available to DPO’s business customers, whilst providing a Pan-African solution to PayFast’s existing customer base,” the company said.
This deal follows Jiji's recent acquisition of Naspers' OLX businesses in Nigeria, Ghana, Kenya, Tanzania, and Uganda.
With this deal, PayFast joins the likes of OLX and Efritin.com among e-commerce businesses that have wrapped up in the west and east Africa over a few years.
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