Araxi Completes R1bn Pay@ Acquisition with Debt Funding

In Short

• Araxi has completed a R1bn takeover of Pay@.
• The purchase will be paid in cash, using R200m from reserves and R800m in senior debt.
• Shareholders and South Africa’s Competition Commission approved the deal.

What Happened

Araxi has closed its R1bn acquisition of Pay@. Araxi, formerly Capital Appreciation, said it received all required approvals to conclude the transaction.

Shareholders voted unanimously in favour at a general meeting on May 8. Investors present represented 57.93% of Araxi’s issued shares. The Competition Commission approved the deal unconditionally on April 30.

Araxi said the transaction will be settled in cash. R200m will come from existing cash reserves, and R800m will come from senior debt, meaning a higher-priority loan that gets repaid before other debt if things go wrong.

Pay@ is one of South Africa’s largest payment providers. Araxi said Pay@ processed more than R60bn in transaction value over the past 12 months.

Araxi also disclosed financial performance for Pay@. For the 12 months to end-February 2025, Pay@ generated R271.2m in revenue, up 26.5% year on year. EBITDA, a profit proxy that excludes interest, tax, depreciation, and amortisation, rose 30.3% to R130.2m.

Why It Matters

Araxi is pitching the deal as a bigger push into enterprise payments, meaning payment tools built for banks and large corporates. Owning Pay@ could help Araxi offer more of the payments stack end to end, from accepting payments to managing transaction flows.

The deal also signals a more aggressive expansion posture. Araxi said Pay@ could unlock regional growth opportunities across Africa and other international markets, likely by taking Pay@’s platform into new geographies and adding more large clients.

Finally, the funding mix is worth watching. Using R800m in senior debt can speed up acquisitions, but it also raises repayment pressure, especially if growth slows or integration takes longer than planned.