JSE-listed fintech Lesaka Technologies said on Tuesday that it has bought 100% of Touchsides, a data analytics and merchant services company, from beverages giant Heineken International.

The terms of the transaction have not been disclosed.

Lesaka said Touchsides and its own Kazang business are “highly complementary”, with the acquisition expected to “significantly expand Kazang’s footprint in the tavern industry in South Africa’s informal market”.

Touchsides has an active base of over 10 000 point-of-sale terminals across South Africa’s informal licensed taverns, and processes more than 1.5 million transactions a day, Lesaka said.

“The business provides platform-as-a-service and software-as-a-service solutions to licensed tavern outlets, enabling the measurement of sales activity in real time, management of stock levels, and informing commercial decisions, such as pricing and promotional offers.

“The data and insights gathered from these terminals carries significant value and potential to be monetised through relationships with a range of clients, including fast-moving consumer goods companies, retailers, wholesalers, route-to-market suppliers and financiers.

“The licensed tavern market in South Africa consists of an estimated 45 000 establishments, is a major vertical in South Africa’s informal market and provides a real growth opportunity for Kazang,” it said.

Read: Lesaka CEO Chris Meyer to step down

As part of the acquisition, Heineken’s operating business in South Africa has agreed to a long-term renewable contract with Touchsides for access to Touchsides’ tavern data and services.

The acquisition, paid for in cash, is expected to close in March 2024.  – © 2024 NewsCentral Media

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