Today, Square Inc. and Afterpay Limited announced that Square has agreed to acquire all of the issued shares in Afterpay by way of a recommended court-approved Scheme of Arrangement.
The announcement shows that Square bought the company for approximately US$29 billion based on the closing price of Square common stock on July 30, 2021, and the deal is expected to be paid in all stock.
The acquisition of Afterpay aims to enable the companies to deliver better financial products and services that expand access to more consumers and increase the revenue for merchants of all sizes. The closing of the transaction is expected in the first quarter of calendar year 2022.
Speaking on the terms of the transactions Jack Dorsey, Co-Founder and CEO of Square said that Square and Afterpay have a shared purpose which is to build a business to make the financial system more fair, accessible, and inclusive.
He further noted that Afterpay has built a trusted brand aligned with those principles and together both companies can better connect their Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers.
Afterpay is known as the global pioneer for ‘buy now, pay later’ (BNPL) platform and Square plans to integrate Afterpay into its existing Seller and Cash App business units which will enable even the smallest of merchants to offer BNPL at checkout.
Square is known for its crypto-friendly payment options, Afterpay will also have the same feature Brian Grassadonia, Lead of Square’s Cash App business said the addition of Afterpay to Cash App will strengthen its growing networks of consumers around the world while supporting consumers with flexible, responsible payment options.
“Afterpay consumers will receive the benefits of Cash App’s financial tools, including money transfer, stock and Bitcoin purchases, Cash Boost, and more, ” today’s announcement confirmed.
Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs also showed their readiness to join square as they both said that by combining with Square, they will further accelerate the company’s growth in the U.S. and globally and also 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.