Australian financial service Afterpay allows customers to buy now and pay later (over 6 weeks with zero interest) and has become common place with many of the top retail outlets accepting the service. Afterpay serves more than 16 million consumers and nearly 100,000 merchants globally with operations in Australia, UK, Canada, the US and NZ.
In an all-stock deal, Square Inc will acquire Afterpay for a staggering A$39 billion, based on the closing price of Square common stock on July 30, 2021. It is expected the deal will close in Q1 of 2022.
“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.”Jack Dorsey, Co-Founder and CEO of Square.
Square plans to integrate Afterpay into its existing Seller and Cash App business units, enable even the smallest of merchants to offer BNPL at checkout, give Afterpay consumers the ability to manage their installment payments directly in Cash App, and give Cash App customers the ability to discover merchants and BNPL offers directly within the app.
Afterpay’s Co-Founders and Co-CEOs will join Square upon completion of the transaction and help lead Afterpay’s respective merchant and consumer businesses, as part of Square’s Seller and Cash App ecosystems. Square will appoint one Afterpay director as a member of the Square Board following closing.
If you’re keen to learn more about the deal, Square will conduct a conference call tomorrow jointly with Afterpay, August 2, 2021 at 5:00 a.m. Pacific Time/8:00 a.m. Eastern Time/10:00 p.m. Australian Eastern Standard Time.