CBN approves MFS Africa's acquisition of Capricorn Digital Limited

MFS Africa has completed its acquisition of Nigerian super-agent Capricorn Digital Limited, Baxi's parent company, following approval of the transaction by the Central Bank of Nigeria.

Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks, with over 90,000 agents. It provides a cash-in/cash-out offering as well as value-added services (account opening, money transfer, bill payment and more) to the last mile.

Crucially it provides entry into the Nigerian market for MFS Africa. Once Baxi is integrated as a key node on our digital payment network, customers will be able to make regional and global payments both to and from Nigeria.

According to Dare Okoudjou, Founder and CEO, MFS Africa, “this deal is a pivotal step in our journey. By combining Baxi’s network of SMEs operating as agents with our pan-African network, we can connect Nigeria’s SMEs to the rest of Africa and the world.

“The acquisition will also provide exciting synergies as Baxi simplifies and integrates online and offline payments for SMEs and merchants in Nigeria through its omni-channel distribution network, while MFS Africa simplifies cross-border payments and integrates payments via one hub.” Dare said.

Founded in 2014 by Degbola Abudu and Folu Majekodunmi, Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks. Baxi provides a cash-in/cash-out offering as well as value-added services — account opening, money transfer, bill payment and more — to the last mile.

In 2021, Baxi processed over $1 Billion in transactions through its network of more than 90,000 agents. Following the acquisition’s close, MFS Africa will build Baxi into a key node on its digital payment network, allowing customers to make regional and global payments to and from Nigeria.

MFS Africa will also widen Baxi’s proposition for offline SMEs to select markets within MFS Africa’s footprint of 320 million mobile wallets across more than 35 African countries.

Baxi’s distributions network represents a crucial interface for banks, fintechs and other financial services providers to reach Nigeria’s 100 million financially unserved or underserved individuals and small businesses.

“Our expansion into Nigeria brings us one step closer in our mission of making borders matter less.” Dare Okoudjou, Founder and CEO, MFS Africa stated.

Both parties declined to disclose the value of the deal but Capricorn's Founder and CEO, Degbola Abudu said the deal is the second-largest of its kind in Nigeria’s fintech space, behind the $200 million acquisition of Paystack by Stripe.