Jack Dorsey’s Square to acquire fintech firm Afterpay for $29 Billion – Square announced yesterday that it will be signing a Scheme Implementation Deed with fintech firm, Afterpay. According to the deal, Square will be acquiring all the issued shares in Afterpay at approximately $29 billion, following the closing price of Square common stock on July 30, 2021.
The acquisition will be completed by Q1, 2022. The deal comes in lieu of the hiked demand of Buy Now, Pay Later (BNPL) services offered by Afterpay.
“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.” said Jack Dorsey, Co-Founder and CEO of Square.
Furthermore, Square has also offered a fixed exchange ratio of 0.375 shares of Square Class A common stock for each Afterpay ordinary share held by Afterpay Shareholders on the record date. Afterpay may also receive, 1% of the total consideration in fiat.
Square’s Global Expansion mission
Integration of Afterpay into Square Bitcoin Cash App will expand the global consumer base for Square. The merger aims to use the BNPL system to attract younger users who find it less risky as compared to credit borrowings. Square’s decision to invest in Afterpay is based on the fintech’s ability to introduce offerings and drive incremental growth for sellers and increased engagement for Cash App customers.
“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. ” said Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs.
Afterpay customers get BTC access
While Square will utilize this merger for global expansion; Afterpay users would get access to Square’s Financial tools, i.e., the option to buy Bitcoin through the Buy Now, Pay Later system. Afterpay’s current consumer base of 16 million, will also extend to Square’s customer base of more than 70 million annual transacting active Cash App users and millions of sellers. This will in turn expand Afterpay’s reach and growth both, virtually and in real-time.
