PayPal agrees to buy iZettle for $2.2bn

Adjust Comment Print

PayPal Holdings Inc (PYPL.O) is in advanced talks to buy iZettle AB (IPO-IZET.ST) in a deal that could value the Swedish fintech at around $2.2 billion, the Wall Street Journal reported on Thursday, citing sources familiar with the matter, APA reports quoting Reuters.

The deal will enable PayPal to expand its presence in in-store payments globally, and will mark the largest-ever acquisition by the California-based company.

Founded in 2010 by Jacob De Geer and Magnus Nilsson, iZettle is a mobile payments company that offers small businesses with portable point-of-sale solutions and free sales overview tools. "Upon closing, we will gain in-store capabilities in 11 markets, near-term in-store expansion opportunities into other existing PayPal markets, and the acceleration of omnichannel commerce solutions in Australia, U.K. and U.S". "Together, we will help small businesses around the world grow and thrive in the global digital economy". IZettle does not now face too much direct competition from its main rival, the NASDAQ-listed Square, as the companies' operations only really overlap in the UK. The company's CEO, Jacob de Geer, will continue to lead the business under PayPal.

SNP leadership to directly challenge Theresa May over Brexit 'power grab'
He said the government would press ahead with the Bill but suggested it would be open to amending it to reflect Scottish concerns. Theresa May will push on with Brexit legislation despite failing to secure the backing of the Scottish parliament.

iZettle was planning an IPO which would have raised around $1.1bn on the Stockholm NASDAQ, making the PayPal payout a no-brainer for investors.

The deal is going to add value to PayPal and help them expand to new markets, a sentiment Dan echoed in his statement, "Jacob and his team bring best-in-class capabilities and talent that will expand our tremendous market opportunity". The company said it expects to reach profitability by the year 2020. PayPal and iZettle have been in talks for years regarding a possible acquisition, but it was being delayed due to multiple reasons.

PayPal hopes the transaction will close in the third quarter, the company announced.