On Thursday PayPal announced that they were buying the Swedish payment processor company iZettle for a record price. The deal gave over 3 percent to the PayPal stock while competitor Square’s stocks slipped.
Find the best trading platform. You capital is at risk when trading. Be careful.iZettle is a Swedish fintech startup that provides mobile payment processors to small businesses and stores around the world, and the company has grown at record speed over the past few years. Last week, iZettle’s CEO announced that they were planning an IPO on Nasdaq Stockholm later this year, and yesterday fintech giant PayPal announced that they have agreed to buy iZettle ahead of the IPO.
The price tag for the deal landed at $2.2 billion, which is a record for the industry but it will most likely be worth it for PayPal. The mega payment provider is already available online in most countries in the world, and after the acquisition of iZettle, they will also be available in hundreds of thousands of physical stores in several countries.
PayPal officials stated that they want to close the deal as soon as in the third quarter before iZettle’s planned IPO on the Stockholm exchange.
The Deal Sent Ripples Across the Market
PayPal’s stock soared by 1.8 percent on Thursday after the deal was announced and another 1 percent in after hours and is continuing the trend on Friday. However, PayPal’s competitor Square, who is already in the brick and mortar payment business, saw its stock fall by over 6 percent from mid-Thursday to early Friday morning. Square’s stock is also showing signs of continuing the trend.
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