Square to Buy Afterpay for $29 Billion to Tap Younger Users
Square Inc., the digital-payments platform led by Twitter Inc. founder Jack Dorsey, agreed to buy Australian buy-now, pay-later company Afterpay Ltd. for $29 billion in its largest-ever acquisition.
The all-stock offer values Afterpay shares at A$126.21 each, 31% higher than Friday’s closing price of A$96.66, the companies said in a statement. Still, that’s less than Afterpay’s February high of A$158.47. The stock jumped as much as 29% to A$125 in Sydney trading Monday.
Square Buys Afterpay in Scrip Deal at 31% Premium: M&A Snapshot
Afterpay lets consumers purchase items on credit and pay later with a series of installments. It’s particularly popular with younger consumers — who may not have a credit card — to buy clothes, beauty products and homewares. There are no fees or interest on the loan as long as people pay on time, according to Afterpay’s website.
About Square, Inc.
Square, Inc. (NYSE: SQ) builds tools to empower businesses and individuals to participate in the economy. Sellers use Square to reach buyers online and in person, manage their business, and access financing. Individuals use Cash App to spend, send, store, and invest money. And TIDAL is a global music and entertainment platform that expands Square’s purpose of economic empowerment to artists. Square, Inc. has offices in the United States, Canada, Japan, Australia, Ireland, Spain, Norway, and the UK.
About Afterpay Limited
Afterpay Limited (ASX: APT) is transforming the way we pay by allowing customers to receive products immediately and pay for their purchases over four installments, always interest-free. The service is completely free for customers who pay on time – helping people spend responsibly without incurring interest, fees or revolving debt. As of June 30, 2021, Afterpay is offered by nearly 100,000 of the world’s favourite retailers and has more than 16.2 million customers.
Afterpay is currently available in Australia, United States, Canada, New Zealand, and in the United Kingdom, France, Italy and Spain, where it is known as Clearpay. Afterpay is on a mission to power an economy in which everyone wins.
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