Square, the US-based financial services firm, announced today that the company is planning to acquire Afterpay Limited, a Melbourne-based financial technology firm, in a deal worth US$29 billion (AUD 39 billion).
According to an official announcement shared by Square, Jack Dorsey’s company has entered into a Scheme Implementation Deed with Afterpay. The mentioned $29 billion deal is expected to be paid in all stock.
Square highlighted that the company is planning to deliver innovative and quality financial products and services through the latest initiative. The deal is expected to close in the first quarter of 2022, subject to the completion of certain closing conditions.
“Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible and inclusive, and Afterpay has built a trusted brand aligned with those principles. Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands,” Jack Dorsey, Co-Founder and CEO of Square, commented.
Afterpay is one of the leading ‘buy now, pay later' (BNPL) platforms. Through the latest Acquisition , Square is planning to integrate Afterpay into its existing Seller and Cash App business units. The integration will enable small merchants to offer BNPL at checkout. Afterpay has expanded its services substantially in the last few months. The Australian company is now serving more than 16 million consumers and approximately 100,000 merchants around the world.
Growth
Square is planning to expand its global presence through the latest acquisition. The company mentioned that the Co-Founders and Co-CEO’s of Afterpay will join Square upon the completion of the transaction.
“By combining with Square, we will further accelerate our growth in the U.S. and globally, offer access to a new category of in-person merchants, and provide a broader platform of new and valuable capabilities and services to our merchants and consumers. We are fully aligned with Square’s purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers,” Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs said.
