Square is acquiring Afterpay for $39 billion. CEO, Jack Dorsey, says Square and Afterpay both have a 'shared purpose' and plans to integrate Afterpay into Square's Seller and Cash App business units.
Afterpay shareholders will receive a fixed exchange ratio of 0.375 shares into Square Class A common stock for every Afterpay share they have. Nick Molnar and Anthony Eisen, Co-Founders and Co-CEOs will join the Square team where they plan to lead the respective merchant and consumer businesses, as part of the Square Seller and Cash App ecosystems.
“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,” Dorsey explained in a statement. “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.”
The new acquisition aims to accelerate Square’s priorities for its Seller and Cash App ecosystems. Square plans to integrate BNPL for all merchants, no matter how small, due to its rapid increase in the US markets both online and in-store. “Buy Now, Pay Later has been a powerful growth tool for sellers globally,” said Alyssa Henry, the Lead of Square’s Seller arm. “We are thrilled to not only add this product to our Seller ecosystem but to do it with a trusted and innovative team.”
Nick Molnar and Anthony Eisen believe that this acquisition is ‘fully aligned to Square’s vision and ‘marks an important recognition’ of the Australian tech sector.
“By combining with Square, we will further accelerate our growth in the U.S. and globally, offer access to a new category of in-person merchants, and provide a broader platform of new and valuable capabilities and services to our merchants and consumers. We are fully aligned with Square’s purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers,” they said. “The transaction marks an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world. It also provides our shareholders with the opportunity to be a part of future growth of an innovative company aligned with our vision.”
Alongside the growth of BNPL for Square, this purchase aims to drive long-term growth with ‘meaningful revenue synergy opportunities’. The business deal also intends to add value, differentiation and scale to Afterpay’s business, where it will “receive the benefits of Cash App’s financial tools, including money transfer, stock and Bitcoin purchases, Cash Boost, and more.”
A single director of Afterpay will be announced as a member of the Square Board following the completion of the transaction.
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