UEPS - Net1 to acquire the fintech firm Connect Group for about $242M in cash and stock

Net 1 UEPS Technologies (NASDAQ:UEPS) inks an agreement to buy 100% of the Connect Group for ~ZAR 3.7B (~$242.0M) at an exchange rate of $1: ZAR 15.22. The Connect Group is a profitable, high-growth and provider of financial technology solutions to ~44,000 micro, small, and medium enterprises in Southern Africa. The addition significantly expands Net1’s addressable market, merchant offering & footprint as it builds the fintech platform in South Africa. The acquisition is expected to close in the quarter ending March 31, 2022, subject to necessary approvals. After adjusting for net debt, the implied Enterprise Value (is ZAR 4.8B (~$315.3M). The Acquisition will be funded via ZAR 2.35B ($154.4M) in debt, consisting of ZAR 1.1B($72.3M) in a five-year term facility and a ZAR 150M ($9.9M) general banking facility that replaces the Connect Group's existing debt facilities and ZAR 1.1B ($72.3M) in 18-month bridge facilities secured against Net1's assets; Deferred consideration

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Net1 to acquire the fintech firm Connect Group for about $242M in cash and stock