Published: Fri, May 18, 2018
Business | By Tara Barton

PayPal acquires Swedish payments startup iZettle

PayPal acquires Swedish payments startup iZettle

Payment giant Paypal has announced that it is all set to acquire Stockholm-based Fintech startup iZettle for $2.2 billion.

The deal will enable PayPal to expand its presence in in-store payments globally, and will mark the largest-ever acquisition by the United States fintech giant, Reuters reports.

The firm iZettle was founded in Sweden, providing credit card readers to small businesses.

Schulman described the merging of iZettle and PayPal as a "strategic fit" combining shared values and culture with complementary product offerings and geographies. In today's digital world, consumers want to be able to buy when, where and how they want.

Multiple Injuries Reported after School Bus, Dump Truck Collide in New Jersey
The collision occurred along Interstate 80 in Mount Olive, New Jersey . "It's like nothing you've ever seen before", he said. Police have not released detailed information, but the Morris County Prosecutor's Office said several people were killed.

The iZettle platform for handling retail transactions is used by almost a half million merchants, according to PayPal.

The company has a presence in 11 countries and offers other services for small businesses such as lending. Since Paypal now does not have a strong offline presence in these markets, it will look to leverage on iZettle to penetrate into these markets. "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". The company went public at 21.50 in January, reached 38 on March 23 and has since dropped out of the IBD 50.

The deal announced Thursday marks the largest acquisition in PayPal's 20-year history and intensifies its competition with Square, a payment processor started by Twitter co-founder and CEO Jack Dorsey. The deal will be an all-cash deal and is expected to be closed by third quarter of the current financial year. The two companies will continue to operate independently until close. The completion of this transaction is subject to customary closing conditions, including regulatory approvals. J.P. Morgan Securities plc is acting as sole financial adviser to iZettle, while Gernandt & Danielsson is acting as its legal adviser.

Like this: