Banking News

Square to Acquire Afterpay for A$39 billion

Square to Acquire Afterpay for A$39 billion

(2 August 2021 – Australia) Square will acquire Australian buy now pay later (BNPL) leading player Afterpay under a scheme of arrangement with an implied value of A$39 billion.

Afterpay’s founders Nick Molnar and Anthony Eisen will stay on with the company to lead Afterpay’s merchant and consumer businesses as part of Square, stating that the acquisition would enable the company to accelerate its growth in the United States and globally.

The deal is expected to close in Q1 2022 as BNPL incumbents such as Afterpay and Zip Co face growing competition from new entrants Apple, Visa, CBA and PayPal Pay in 4.

“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” Afterpay Founders Mr Molnar and Mr Eisen said.

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