Araxi has agreed to acquire the controlling stake in Pay@ Group for R1-billion.
Pay@ is ab end-to-end provider of integrated B2B payments solutions with B2C capabilities, with over 9 000 retailer locations, 150 000 mobile point-of-sale (POS) payment points, millions of downloads, and more than 15 digital payment platforms (banks, telcos, voucher providers, and fintechs).
The company serves a wide range of leading enterprises and SMEs, including pay TV, money remittance, financing, insurance, and public sector organisations in South Africa, Namibia, Botswana, Zimbabwe, Eswatini and Lesotho.
Pay@’s secure, efficient multi-product platform seamlessly consolidates a range of payment options into a single solution and boasts a 99,99% efficacy rate.
The company processed more than R60-billion in transaction value over the past 12 months, with a compound annual revenue growth of 22% in the last three years.
Araxi chief executive Bradley Sacks says: “This transaction unites two leading participants operating in different areas of the South African payments ecosystem.
“By leveraging our complementary strengths, we will deliver a powerful, end-to-end fintech proposition for clients and unlock significant value for stakeholders.
“With no overlapping products, Araxi and Pay@ together create a seamless platform that supports faster innovation, broader solutions, and greater long-term value.”
Pay@’s business model demonstrates strong profitability and operating leverage. For the 12 months to 28 February 2025, it@ generated revenue of R271,2-million (up 26,5%), EBITDA of R130,2-million (up 30,3%), and R91,3-million (up 34,2%).
Pay@’s service offering is complementary to Araxi’s payments division, with almost no overlap. The proposed acquisition is expected to enhance the Araxi Group’s payments capabilities significantly, enabling it to deliver an expanded, more competitive, and unique offering to its enterprise clients across South Africa.
In addition, the acquisition is anticipated to unlock meaningful regional growth opportunities across Africa and other international markets.
Pay@ has a range of new solutions in the process of being introduced, with opportunities to expand into e-commerce, software-as-a-service, and other areas of funds transfer.
The purchase consideration of R1-billion will be settled in cash, comprising R200-million from the Araxi Group’s existing cash reserves and R800-million of senior debt already committed.
The transaction will require shareholder approval and circular will be distributed to Araxi shareholders in due course.
Pay@ chief executive Andrew Hardie comments: “We are excited to combine our extensive platform and experience with Araxi’s deep tech skills and digital and cloud expertise.
“Araxi has proven its bone 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.
“Our new relationship with Araxi also presents Pay@ with unique opportunities and opens new horizons to deliver significant value for our partners, clients, shareholders, and employees.”