PayPal gains bigger in-store presence with $2.2B acquisition

PayPal buys Swedish start-up iZettle for $2.2bn in its biggest ever deal

PayPal Holdings (PYPL) has agreed to buy Sweden's iZettle for $2.2 billion, marking its biggest acquisition since being spun off by eBay (EBAY).

When complete, the acquisition of iZettle will mean PayPal has an in-store presence in 11 markets in Europe and Latin America.

Schulman described the merging of iZettle and PayPal as a "strategic fit" combining shared values and culture with complementary product offerings and geographies.

IZettle, a mobile digital-payments processor, competes with the U.K.'s Square (SQ), Canada's Shopify (SHOP) and Brazil's PagSeguro Digital (PAGS) in various markets.

A takeover would mark just the latest move in the race for dominance of the digital payments market, in which established companies like PayPal are facing challengers. "The combination of iZettle and PayPal will provide tremendous benefits to our merchants who will have access to an even wider range of tools to help them get paid, sell smarter and grow".

iZettle expects to earn revenue of roughly $165 million in 2018 and process about $6 billion worth of transactions on its platform, according to a press release from the two companies.

It owns the peer-to-peer payments company Venmo, which is popular in the United States, and previous year acquired Swift Financial, which makes business loans.

The tie-up with iZettle will increase PayPal's capacity with firms with physical retail operations. The deal will be an all-cash deal and is expected to be closed by third quarter of the current financial year.

Evercore is acting as sole financial adviser to PayPal, and Skadden, Arps, Slate, Meagher & Flom LLP and Roschier are acting as its legal advisers with regard to the transaction.



Latest news

Bill Gates Says Trump Didn't Know The Difference Between HPV And HIV
MSNBC's All in With Chris Hayes uncovered the video of the Microsoft founder speaking to an audience at a Gates Foundation event. To be clear, there is a huge difference between HPV and HIV. " Human immunodeficiency virus (HIV) attacks the immune system".

NHS contract with Capita 'potentially put patients at risk'
Although the mistakes did not result in any harm, they will raise further concerns about the NHS's cancer screening. Capita accepted accountability for not meeting high standards of service previously, the spokesperson emphasised.

Aberdeen New Thai Investment Trust Plc (ANW.L) Moves 0.35%
Advancing issues outnumbered declining ones on the NYSE by a 2.30-to-1 ratio; on the Nasdaq , a 2.62-to-1 ratio favored advancers. Now the stock price is moving -30.27% off from the highest level of twelve months and +482.95% above from twelve months low.

Woman cleared of murdering ex-boyfriend in acid attack
Wallace, described as controlling, jealous and vindictive, attacked the engineer at her flat in Westbury Park, Bristol. Days before, she had been given a police warning for harassing Mr van Dongen's partner, Violet Farquharson, 46.

Congress to Observe 'Save Democracy Day' in Protest Against Karnataka Guv's Decision
Goa, Bihar, Congress leaders in Manipur and Meghalaya have sought time from the respective Governors of the state for a meeting tomorrow.

Other news