Twitter founder’s Square buys Afterpay for $39 BILLION in largest transaction in Australian corporate history
- Afterpay will merge with US digital payment giant Square in a $39 billion deal
- Square will acquire all issued shares in Afterpay under the transaction
- Afterpay integrates into Square’s existing merchant and money app units
- Allows customers to manage installment payments in Square’s Cash app
Australian buy-now-pay-later group Afterpay will merge with US digital payments giant Square in a $39 billion deal.
The pair has entered into an executory deed under which Square will acquire all of the issued shares in Afterpay.
The transaction — which has been unanimously recommended by the Afterpay board, barring no other superior offer — is valued at $39 billion ($29 billion) and will be paid in Square stock.
“Square and Afterpay have a common goal,” Square CEO and co-founder Jack Dorsey said in a statement Monday.
Buy-now-pay-later giant Afterpay to merge with US digital payment giant Square in $39 billion deal
Afterpay’s co-founders and co-CEOs — Anthony Eisen (pictured right) and Nick Molnar (left) — will join Square once the deal closes in Q1 2022.
“Together, we can better connect our Cash App and merchant ecosystems to deliver even more compelling products and services for merchants and consumers, empowering them again.”
Square said Afterpay would be integrated into its existing merchant and money app units, allowing merchants to offer BNPL options to customers at checkout.
Afterpay customers can manage their installment payments directly in Square’s Cash app, and Cash app customers can look up merchants and BNPL options in the app.
Under the deal, Afterpay shareholders will receive 0.375 Square shares for every Afterpay share held.
Based on Square’s U.S. closing price of $247.26 per share on July 30, Afterpay shares have an implied value of $126.21 each — a premium of about 30 percent to Friday’s close.
The deal is expected to close in the first quarter of calendar 2022, pending court approval.
Afterpay’s co-founders and co-CEOs – Anthony Eisen and Nick Molnar – will join Square once that’s ready.
Jack Dorsey, chief executive officer of Twitter Inc. and Square Inc. (pictured), said the merger will enable their “Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers.”