BNPL giant Afterpay bought by Twitter boss Jack Dorsey’s Square for $29bn

Fintech

‘Buy now, pay later’ giant Afterpay has been bought out in a deal worth $29 billion (£21 billion) by digital payments platform Square.

Square, which shares its co-founder and chief executive Jack Dorsey with Twitter, agreed to buy Afterpay at a 30 per cent premium making it the biggest buyout in Australian history.

Afterpay shareholders will also receive 0.375 shares of Square stock for every share in Afterpay they own making the deal an “expensive purchase”, according to retail analyst Neil Saunders.

However, Saunders added that the deal was a reflection of the intense appetite for BNPL companies, which have seen adoption nearly triple since the start of the pandemic.

“The buy now, pay later market is growing very rapidly and it makes a lot of sense for Square to have a solid stake in it,” he added.

READ MORE: Brits owe BNPL schemes average of £244 as experts reveal they can jeopardise mortgages

The deal, which is expected to be finalised in early 2022, comes after a year of staggering growth from Afterpay which is now used by over 100,000 retailer across the US, Canada, Australia, New Zealand and much of Europe.

Meanwhile Square reported revenues of $4.7 billion over its second quarter, achieving profits of $204 million and handling over $40 billion in payments.

Dorsey said of the deal: “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.”

Click here to sign up to Charged’s free daily email newsletter

Fintech

RELATED POSTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Menu