PayPal buys iZettle for United States dollars 2.2 bln

PayPal buys Swedish start-up iZettle for $2.2bn in its biggest ever deal

PayPal in talks to buy Swedish small-business platform iZettle for $2.2 billion

iZettle, best known for offering small payment machines to small merchants, ranks among the rivals of Square, founded by Twitter CEO Jack Dorsey.

Paypal's acquisition of iZettle has also come at a time when the latter has already filed for an IPO in the Stockholm stock market for raising almost $227 million. The small businesses are active across 11 countries, mostly in Europe, as well as Mexico and Brazil. "iZettle and PayPal are a strategic fit, with a shared mission, values and culture-and complementary product offerings and geographies. With almost half a million merchants on their platform, Jacob de Geer and his team add best-in-class capabilities and talent that will expand PayPal's market opportunity to be a global one-stop solution for omnichannel commerce".

The digital payments giant PayPal Holdings is in advanced talks about a takeover of iZettle in a move that would gatecrash one of the European technology sector's biggest stock market flotations.

USA -based PayPal already operates in more than 200 countries around the world but is working to expand its offerings.

Tottenham EXCLUSIVE: Mauricio Pochettino set to SNUB Chelsea and remain with Spurs
I hope we get some good recruits to help us push on and as the manager said the next step is to try and hopefully win something this year".

The deal will also help PayPal provide a more comprehensive suite of services to its merchants. IZettle expects to generate $165 million in revenue in 2018, and process about $6 billion on its platform. From 2015 to 2017, revenues at iZettle have grown at a CAGR of 60 percent.

Being the biggest ever acquisition for Paypal, the payment giant is obviously taking a huge bet by acquiring the Stockholm headquarter startup. The two companies will continue to operate independently until close.

The transaction, which is expected to be United States dollars 0.01 dilutive to PayPal full year adjusted earnings per share, is subject to the usual closing conditions, including regulatory approvals.

Latest News