Araxi Secures Senior Debt To Finalise R1 Billion Pay At Transaction

Bradley Sacks, chief executive at Araxi. Image supplied

The transaction will be executed through Araxi’s wholly-owned subsidiary, African Resonance, and includes all group companies operating under the Pay@ Group umbrella.

Transaction structure and funding

The R1bn purchase price will be settled in cash, comprising:

• R200 million from Araxi’s existing cash reserves; and
• R800 million in senior debt, already committed.

Araxi currently has no material third-party interest-bearing debt. Post-completion gearing levels are expected to remain modest and comfortably serviceable through operational cash flows.

The transaction qualifies as a Category 1 acquisition under JSE Listings Requirements and will therefore require shareholder approval. A circular will be distributed to shareholders in due course.

A profitable, high-growth payments platform

Pay@ is one of South Africa’s largest independent payments processing platforms, offering end-to-end B2B payment solutions with B2C capabilities.

The 19-year-old business operates:

• 9,000+ retailer locations
• 150,000+ mobile POS payment points
• 15+ integrated digital payment platforms (including banks, telcos, voucher providers and fintechs)
• Millions of app downloads
• A 99.99% platform efficacy rate

Over the past 12 months, Pay@ processed more than R60bn in transaction value.

Financially, the business demonstrates strong operating leverage and profitability. For the 12 months to 28 February 2025, Pay@ delivered:

• Revenue of R271.2 million (up 26.5%)
• EBITDA of R130.2 million (up 30.3%)
• Headline earnings of R91.3 million (up 34.2%)

The company has grown organically since inception and carries no third-party interest-bearing debt, funding expansion entirely through internal cash generation.

Pay@ serves enterprises and SMEs across multiple sectors, including pay TV, remittances, financing, insurance and public sector institutions in South Africa, Namibia, Botswana, Zimbabwe, Eswatini and Lesotho.

Strategic fit: Complementary, not overlapping

The acquisition significantly strengthens Araxi’s Payments division by adding a highly complementary platform with almost no product overlap.

Bradley Sacks, chief executive of Araxi, 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 secure multi-product platform consolidates various payment options into a single integrated solution. The combination with Araxi’s existing fintech capabilities is expected to enhance enterprise-level offerings across South Africa while positioning the Group for expanded regional growth.

Growth pipeline and regional expansion

Pay@ enters the transaction with a pipeline of new solutions already in development, including expansion into:

• E-commerce enablement
• Software-as-a-service (SaaS) models
• Broader funds transfer innovations

Araxi’s complementary technology stack and group capabilities are expected to accelerate product rollouts, enhance customer value, and further strengthen profitability.

Importantly, Pay@’s experienced management team will remain in place post-acquisition and partner with Araxi to drive geographic expansion and product diversification across Africa and selected international markets.

Building a scaled African fintech platform

The proposed acquisition materially expands Araxi’s payments ecosystem reach, creating an integrated platform that spans physical retail networks, mobile POS infrastructure, and digital financial services.

With a profitable, debt-free target business, strong cash generation, and proven transaction volumes, the R1bn deal positions Araxi to scale its fintech footprint across Southern Africa and beyond.

Subject to shareholder approval, the transaction marks a significant strategic step in consolidating South Africa’s fragmented payments landscape and strengthening the Group’s competitive positioning in enterprise fintech solutions.