PayPal in talks for $2.2bn takeover of iZettle

Marco Green
Мая 18, 2018

IZettle reportedly sought a $1.1 billion valuation for the IPO.

PayPal is preparing to take over Swedish payments app iZettle, just a week after it announced plans to float.

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

With the agreement, PayPay gains access to almost 500,000 small businesses that use iZettle's technology to process customer transactions involving credit cards. It has since expanded into financing services, with a presence in Brazil, Mexico and Europe.

Paypal Holdings Inc shares were trading at $79.09 per share on Thursday afternoon, up $1.27 (+1.63%).

"Combining our assets and expertise with a global industry leader like PayPal allows us to deliver even more value to small businesses to help them succeed in a world of giants", iZettle chief executive Jacob de Geer said in the release.

PayPal, based in San Jose, California, says Stockholm-based iZettle is on pace to process about $6 billion in payments this year. The company said it expects to reach profitability by the year 2020.

By joining forces with PayPal, which operates in 200 countries, iZettle will be able to accelerate its global expansion, including in the United States. Upon closing, iZettle will become the European center of excellence for PayPal's in-store product and services offerings.

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.

Other reports by

Discuss This Article