Together, Flash and Shop2Shop will offer services spanning cash handling, payment acquiring, digital payments, value-added services and related financial products.
Pepkor Holdings has announced plans to combine its wholly owned fintech subsidiary, Flash, with Shop2Shop to create one of South Africa's largest merchant commerce and fintech platforms, with annual transaction throughput exceeding R200 billion.
The proposed transaction will see Pepkor hold a controlling stake of about 57.1% in the newly formed business, known as FintechCo.
The deal places an implied equity valuation of approximately R21.3 billion on FintechCo and is expected to unlock strategic and operational synergies.
Pepkor said the transaction forms part of its strategy to build an integrated fintech ecosystem serving South Africa's informal economy.
