Capitec has entered into a binding agreement to acquire 100% of fintech start-up Walletdoc, subject to regulatory approvals.
In a statement, the bank says the acquisition marks a significant milestone in its strategy to offer secure payment acceptance to Capitec Business clients and e-commerce solutions to Capitec Personal Banking clients.
Established in 2015, Walletdoc is a South African fintech providing payment gateway solutions for merchants, including online and in-app payments, digital wallets, instant EFT, payment links, and real-time payouts.
Graham Lee, CEO of Capitec, says: “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.”
Leonard Shenker, CEO of Walletdoc, says: “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.”
According to Capitec, 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,” concludes Lee.
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