Square Inc. will buy Australia’s Afterpay Ltd in an all-stock deal for about $29 billion as US fintech firm Buy Now, Pay Later (BNPL) seeks to take advantage of the growing popularity of credit options.
The companies said on Monday that the deal will create an online payments powerhouse and help accelerate the growth of Afterpay in the key United States market as well as globally.
Afterpay Afterpay has been the bellwether of the niche online payments space that went mainstream last year as more people chose to pay in installments for everyday items during the pandemic.
Square Chief Executive Jack Dorsey said, “Square and Afterpay share a common objective… together, we are improving our Cash App and seller ecosystem to deliver even more engaging products and services for merchants and consumers. can connect with.”
The companies said Afterpay shareholders will receive 0.375 shares for every share of Square Class A stock, which is priced at about $126.21 per share based on Square’s Friday close.
The offer is a 30% plus premium over the last close of Afterpay and the Australian firm’s shareholders are expected to hold approximately 18.5% of the combined company.
Afterpay’s board has unanimously recommended the deal to its shareholders, the company said in a joint statement.
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