Araxi Moves to Acquire Pay@ in R1 Billion Cash and Debt Deal

Araxi Moves to Acquire Pay@ in R1 Billion Cash and Debt Deal. Araxi has announced plans to acquire an eighty percent stake in Pay At Holdings (Proprietary) Limited and its affiliate International Payment Holdings Limited for a total consideration of R1 billion.

The transaction will be executed through the company’s wholly owned subsidiary African Resonance and includes all group companies operating under the Pay@ Group umbrella. The purchase price will be settled in cash using R200 million from existing reserves and R800 million in committed senior debt funding arrangements already secured.

Araxi currently has no material third party interest bearing debt and expects post completion gearing levels to remain modest and serviceable through operational cash flows. The deal qualifies as a Category One acquisition under the listings requirements of the JSE and will require shareholder approval before completion proceeds.

A circular outlining the transaction will be distributed to investors in due course once regulatory processes are finalised. Pay@ operates as a large independent payments processing platform providing end to end business payment solutions with additional consumer transaction capabilities.

The business operates more than nine thousand retailer locations and over one hundred fifty thousand mobile point of sale payment points. It also connects more than fifteen integrated digital payment platforms including banks telecommunications providers voucher networks and financial technology operators.

Over the past twelve months the platform processed more than R60 billion in transaction value while maintaining a platform efficacy rate of 99.99%. For the twelve months ending 28 February 2025 the company reported revenue of R271 point two million with EBITDA of R130 point two million.

Headline earnings reached R91 point three million reflecting continued organic growth funded entirely through internally generated cash without external borrowing. Pay@ provides services to enterprises and smaller businesses across sectors such as pay television remittances financing insurance and public institutions.

Its operations extend across South Africa Namibia Botswana Zimbabwe Eswatini and Lesotho serving clients through extensive payment networks and digital access channels. The acquisition will be funded through a combination of existing cash resources and senior debt commitments previously secured by the acquiring entity.

Shareholders will vote on the proposed transaction following distribution of the circular outlining details and regulatory approvals required for completion. If approved the agreement will transfer ownership of the Pay@ Group to Araxi through its subsidiary structure upon closing of the deal.