Capitec buying South African company in deal worth R400 million
Capitec has announced a deal where it will acquire 100% of fintech company Walletdoc Holdings in a deal that could reach R400 million.
Walletdoc was established in 2015 and provides payment gateway services for merchants, including in-app payments, digital wallets, Instant EFT, and more.
Capitec said that Walletdoc’s culture of innovation, efficiency, and client focus is closely aligned with its core values.
The acquisition is a strategic step in Capitec’s plan to reduce payment costs, expand access to digital financial services, and promote financial inclusion, it said.
The purchase consideration comprises a cash payment of R300 million, subject to customary adjustments upon closing.
There will also be a deferred earn-out of R100 million linked to the Capitec share price and payable in cash over three years. The earnout is subject to the achievement of certain milestones over that period.
“Capitec believes in the power of innovative technology to deliver smart, seamless payment solutions that benefit both merchants and consumers,” it said.
“We are committed to making financial services more accessible and affordable for all South Africans.”
“We see this acquisition as an important step in building a more inclusive and competitive payments ecosystem.”
The deal, which remains subject to regulatory approval, joins a list of high-profile acquisitions by Capitec.
In 2019, Capitec acquired Mercantile Bank in a deal worth R3.5 billion, which has since been rebranded as Capitec Business Banking.
In 2024, Capitec also increased its stake in international lender Avafin to 97%, with the company having operations in Poland, Spain, Mexico, Czechia, and Latvia.
Newly appointed Capitec Group CEO Graham Lee also announced that the group is looking to expand into international markets, even if the exact details are yet to be released.
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