(Reuters)-Square Inc buys Australia’s Afterpay Ltd for about $ 29 billion in all equity transactions as US fintech companies are looking to take advantage of the fast-growing buy now, pay later (BNPL) credit option do.
The two companies said on Monday that the transaction would create a driving force for online payments and help accelerate afterpay growth not only in the major US markets but also globally.
Afterpay is a pioneer in the niche online payments sector that became mainstream last year as more people chose to pay in installments for their daily necessities during a pandemic.
“Square and Afterpay have a common purpose … together, we can better connect the Cash App and Seller ecosystems to bring more attractive products and services to merchants and consumers.” Said Jack Dorsey, Square’s CEO.
Afterpay shareholders will acquire 0.375 Square Class A shares per share they own. This means a price of around A $ 126.21 per share, based on Square’s closing price on Friday.
The offer is a premium of over 30% on the final closing of Afterpay, and shareholders of the Australian company are expected to own approximately 18.5% of the merged company.
Afterpay’s board unanimously recommended shareholders to trade, the company said in a joint statement.
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Square buys Afterpay for $ 29 billion, buys it now, and Reuters pays for the later boom
https://www.investing.com/news/stock-market-news/square-to-buy-australias-afterpay-for-29-billion-2575301 Square buys Afterpay for $ 29 billion, buys it now, and Reuters pays for the later boom