JSE-listed payment solutions provider Araxi will acquire B2B payment solutions company Pay@ in a R1 billion deal, to be settled in cash. The consideration comprises R200 million from the Araxi Group’s existing cash reserves and R800 million in senior debt already committed.
Forty percent of the shares of Pay@ are currently owned by a US private equity firm and the acquisition will ensure full South African ownership of Pay@.
Founded in 2007, Pay@ is a payments processing platform that provides end-to-end B2B integrated payment solutions with B2C capabilities.
The company claims to have over 9 000 retailer locations, more than 150 000 mobile point-of-sale payment points, and 15-plus digital payment platforms, including banks, telcos, voucher providers and fintech firms.
Pay@ operates in South Africa, Namibia, Botswana, Zimbabwe, Eswatini and Lesotho.
According to a statement, Pay@ processed more than R60 billion in transaction value over the past 12 months and recorded compound annual revenue growth of 22% over the past three years.
For the 12 months to 28 February 2025, the company generated revenue of R271.2 million (up 26.5%), EBITDA of R130.2 million (up 30.3%), and profit of R91.3 million (up 34.2%).
Araxi provides payment solutions to businesses in the financial services and retail sectors. Its product portfolio includes software solutions for cloud, AI and agentic implementations.
The companies said the acquisition will strengthen Araxi’s payments capabilities and solidify its presence in the global payments ecosystem.
The transaction unites two participants operating in different areas of the South African payments ecosystem, says Araxi CEO Bradley Sacks. "With no overlapping products, Araxi and Pay@ together create a seamless platform that supports faster innovation, broader solutions and greater long-term value.”
Pay@ CEO Andrew Hardie adds: “Araxi has proven its bona fides in the areas in which it operates and will provide Pay@ with strategic support to fuel our continued growth. We both have longstanding banking and corporate relationships, and this transaction presents an opportunity to build on those.”
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