Lesaka has signed a deal for the head of its newly acquired money spinner to stay with the technology group until 2025, helping with the integration of its acquisition.
The group, valued at R4.4bn, has a primary listing on the Nasdaq and a secondary one on the JSE, and uses its banking and payment technology to distribute low-cost financial and value-added services to small businesses and consumers.
Recent earnings growth has been driven by its newly acquired fintech business, Connect Group, which forms part of a strategy shift.
Lesaka — formerly Net1 — bought Connect in April through a R3.7bn deal meant to expand its footprint in the small, medium and micro enterprises (SMME) sector in Southern Africa. Connect, founded in 2006, provides fintech solutions to nearly 44,000 SMMEs.
On Thursday, Lesaka said it had entered into a “new employment arrangement” with Steven Heilbron to be retained as CEO of Connect, a role he has held since 2013.
Heilbron joined Lesaka after the acquisition of Connect in the same capacity. He spent 19 years at Investec in SA and the UK, where he served as global head of private banking, as well as joint CEO of Investec Bank plc.
“Steven offers deep experience and knowledge in building businesses to scale in expanding markets, which supports Lesaka’s vision to bring financial inclusion to consumers & merchants in southern Africa,” said Chris Meyer, Lesaka group CEO. Heilbron’s role will transition towards a focus on group strategy, mergers & acquisitions and special projects.
The financial services veteran is credited with leading a private consortium that acquired Cash Connect Management Solutions in 2013 before overseeing the company’s growth and rebranding as the Connect Group.
Additionally, he spearheaded the acquisition and integration of Kazang — a business specialising in helping spaza shops and informal traders to sell prepaid airtime, data and electricity — into Connect. The company is focusing on growing its SA operations — having just sold its remaining stake in Liechtenstein-based Bank Frick for $30m — and it has since shut its international payments unit.
Since changing tack, the group is now made up of two main divisions: a merchant and consumer segment, which accounted for most revenue in the past financial year. The consumer units focus on products such as unsecured credit, transactional banking, microinsurance and value-added services through its EasyPay platform.
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