Business & Investment

Square buys Afterpay for $ 29 billion, buys it now, and Reuters pays for the later boom

© Reuters. File Photo: On July 9, 2020, the Afterpay logo will be displayed in the show window in Sydney, Australia. REUTERS / Stephen Coates

(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.

Disclaimer: Fusion media We inform you that the data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and forex prices are provided by the market maker, not the exchange, so prices may not be accurate and may differ from actual market prices. In other words, price is an indicator and is not suitable for trading purposes. Therefore, Fusion Media is not responsible for any transactional losses that may occur as a result of using this data.

Fusion media Alternatively, anyone involved in Fusion Media will not be liable for any loss or damage resulting from relying on the data, quotes, charts, trading signals and other information contained on this website. Please be fully informed about the risks and costs associated with financial market transactions. This is one of the most risky forms of investment possible.

Square buys Afterpay for $ 29 billion, buys it now, and Reuters pays for the later boom Square buys Afterpay for $ 29 billion, buys it now, and Reuters pays for the later boom

Back to top button