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Twitter co-founder and CEO Jack Dorsey’s payments company Square Inc. has announced that it will purchase buy now, pay later (BNPL) firm Afterpay for $29 billion, the biggest buyout of an Australian firm. The transaction amount is expected to be paid in all stock. As of writing, Square (SQ) has been trading at $247.26. Afterpay shareholders will receive a fixed exchange ratio of 0.375 shares of Square Class A common stock for each Afterpay (APT) ordinary share. Square may elect to pay 1% of the total consideration in cash, said in its official announcement. The deal is expected to be closed in the first quarter of 2022, subject to certain conditions. Dorsey, Co-Founder, and CEO of Square said,
“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.”
The company plans to integrate Afterpay into its existing Cash App and Seller business units and offer Afterpay customers the ability to manage their payments directly in Cash App. Also, Afterpay consumers will receive the benefits of Cash App’s financing tools, including stock and Bitcoin purchases, money transfer, cash Boost, etc. As we recently reported, another Australian BNPL firm Zip Co Ltd. is exploring the option to allow its users to trade cryptocurrencies using their Zip wallets, which was one of the most requested new product features from the company's users. Brian Grassadonia, Lead of Square’s Cash App business said,
“The addition of Afterpay to Cash App will strengthen our growing networks of consumers around the world while supporting consumers with flexible, responsible payment options.”
By combining with Square, Afterpay also plans to accelerate its growth in the US and globally and further offer access to its new category of in-person merchants, said Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs. They will join Square upon completion of the transaction. Square will also appoint one Afterpay director as a member of the Square Board following the transaction’s closing. [deco-beg-single-coin-widget coin="BTC"]