Square To Pay $39 Billion For Afterpay
Twitter founder Jack Dorsey’s digital payments company Square will acquire Australian company Afterpay, in a massive $AUD39 billion takeover deal.
The dollar figure is based on Square’s market value on July 30, and will mark one of the largest ever mergers and acquisitions for an Australian company. Square shares closed at $USD96.66 overnight.
Afterpay’s co-founder Anthony Eisen and Nick Molnar will join Square as part of the deal, which is expected to close in the first quarter of 2022.
“The acquisition aims to enable the companies to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes,” Afterpay told the ASX.
“By combining with Square, we will further accelerate our growth in the US 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,” Afterpay co-founders Anthony Eisen and Nick Molnar said.
“We are fully aligned with Square’s purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers.
“The transaction marks an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world. It also provides our shareholders with the opportunity to be a part of future growth of an innovative company aligned with our vision.”
“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,” Dorsey said of the deal.
“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.”