Digital payments company Square announced that it has agreed to acquire Australia’s Buy Now, Pay Later (BNPL) firm Afterpay in a in an all-stock deal worth approximately US$29 billion.
The closing of the transaction is expected in the first quarter of 2022.
Square had recently announced that its financial arm has begun its banking operations in the US to offer business loan and deposit products, beginning with underwriting and originating business loans for Square Capital’s existing lending product.
The acquisition of Afterpay will allow Square to expand its offerings to include that of consumer lending as well.
Square plans to integrate Afterpay into its services to offer BNPL services at checkout. Meanwhile, Afterpay will offer its consumers to manage their installment payments directly in the app.
Afterpay’s Co-Founders and Co-CEOs will join Square upon completion of the transaction and help lead its respective merchant and consumer businesses.
Additionally, Square will appoint one of Afterpay’s director as a member of its board following the closing of this 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.
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.”
said Jack Dorsey, Co-Founder and CEO of Square.
“By combining with Square, we will further accelerate our growth in the U.S. 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.
We are fully aligned with Square’s purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers,”
said Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs.
Featured image credit: Photo by Clay Banks on Unsplash
