South African fintech company Adumo has announced its acquisition of point-of-sale company GAAP for an undisclosed amount. The deal is subject to approval by the Competition Commission.
Paul Kent, CEO at Adumo, says: “This acquisition will strengthen our relationship with GAAP as we work together to introduce innovative fintech products to restaurants at a critical time. The impact of the pandemic and lockdowns has pushed many restaurants to the brink. Together with GAAP, we will develop and introduce fintech solutions to restaurants in an effort to help them survive and thrive amid challenging conditions.”
GAAP specialises in providing products to the hospitality industry, including point-of-sale hardware and software, drive-thru systems for quick-service restaurants, digital menu board solutions, and online ordering solutions including all relevant customer support. The company has grown into the leading African hospitality point-of-sale provider, with customers that include KFC, McDonalds, Burger King, Nandos, Chicken Licken, Hungry Lion, Wimpy, Krispy Kreme, King Pie, Simbisa Brands and Costa Coffee, which is about to enter the African market.
As part of the deal, Adumo will take a majority shareholding in GAAP. GAAP will become an Adumo company but will continue to operate independently under its existing brand.
“The pandemic is forcing the payments and restaurant industries to fast-track innovation,” says Kent. “This complementary partnership will unlock opportunities for developing innovative new products that can be delivered to the changing world of hospitality and quick-service restaurants. It is our vision to create an open and fair payment industry that drives inclusion and growth, and we look forward to working with GAAP to unlock these opportunities.”
Adumo services more than 30 000 active clients and 50 000 active card machines, processing $4-billion in transaction value across seven African countries. The company brings together three of South Africa’s most well-known payment providers: Sureswipe, Innervation Pan African Payments, and iKhokha.
South Africa in Focus
Population: 59 million (2019) - World Bank
GDP: $351 billion (2019) - World Bank
GDP Per Capita: $6,001 (2019) - World Bank