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Stripe is acquiring Paystack
Posted on Friday, 16 October 2020 11:54
Stripe has agreed to acquire African online commerce company Paystack to expand its presence in Africa.

The groups did not disclose terms of the deal; however, recent media reports suggested the deal values the target at USD 200.00 million.

Stripe and Paystack have been working closely for some time and the acquiror led the group’s series A funding round and has provided ongoing guidance as the company rapidly scaled.

The African Internet economy, with online commerce in the region growing 21.0 per cent year-on-year, 75.0 per cent faster than the global average.

Paystack is based in Lagos that makes it easier for organisations to collect payments from around the world.

Over 60,000 businesses in Nigeria and Ghana use the group’s platform to securely collect online and offline payments, launch new business models and depend customer relationships.

The deal is subject to regulatory approvals.

Paystack will continue to operate independently, growing their operations in Africa and adding more international payment methods.

In April, Stripe raised USD 600.00 million in a round of funding from Sequoia Capital Operations, AH Capital Management and General Catalysts Group Management.

Matt Henderson, Stripe’s business lead in Europe, the Middle East and Africa, said: “This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market.”

According to its website, the target had over 25,000 live merchants in November 2018, more than 2.90 million payments collected by October 2018 and USD 27.50 million+ paid out to merchants as of the same month.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 1,238 deals targeting companies based in Africa announced worldwide in 2020 to date.

In the largest of these, RMH Holdings is buying a 33.0 per cent stake in South Africa’s FirstRand ZAR 74.33 billion (USD 4.47 billion).

Other targets include Capitec Bank Holdings, Greenko Energy Holdings and Transaction Capital.

© Zephus Ltd