Square to acquire Afterpay for AU$39bn
Square, an NYSE-listed financial services and digital payments company, is set to acquire Australian-listed Afterpay for US$29 billion (AU$39 billion).
Square Co-founder and CEO Jack Dorsey said both the companies have a shared purpose. “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.”
Afterpay serves more than 16 million consumers and nearly 100,000 merchants globally, including major retailers across key verticals such as fashion, homewares, beauty, sporting goods and more.
“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,” Dorsey said.
The buy now, pay later platform Afterpay will accelerate Square’s strategic priorities for its Seller and Cash App ecosystems.
Square plans to integrate Afterpay into its existing Seller and Cash App business units, enable even the smallest of merchants to offer BNPL at checkout, give Afterpay consumers the ability to manage their instalment payments directly in Cash App and give Cash App customers the ability to discover merchants and BNPL offers directly within the app.
“Buy now, pay later has been a powerful growth tool for sellers globally,” said Alyssa Henry, Lead of Square’s Seller business.
“We are thrilled to not only add this product to our Seller ecosystem, but to do it with a trusted and innovative team.”
“The addition of Afterpay to Cash App will strengthen our growing networks of consumers around the world, while supporting consumers with flexible, responsible payment options,” said Brian Grassadonia, Lead of Square’s Cash App business.
“Afterpay will help deepen and reinforce the connections between our Cash App and Seller ecosystems, and accelerate our ability to offer a rich suite of commerce capabilities to Cash App customers.”
"By combining with Square, we will further accelerate our growth in the US 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,” said Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs.
“The transaction marks an important recognition of the Australian technology sector as home-grown 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.”
For Square, BNPL presents an attractive opportunity supported by shifting consumer preferences away from traditional credit, especially among younger consumers; consistent demand from merchants for new ways to grow their sales; and the global growth in omnichannel commerce.
Combined, Square and Afterpay’s complementary businesses present an opportunity to drive growth across multiple strategic levers. This includes: enhancing both the Seller and Cash App ecosystems; bring added value, differentiation and scale to Afterpay; and drive long-term growth with meaningful revenue synergy opportunities.
Afterpay’s Co-Founders and Co-CEOs will join Square upon completion of the transaction and help lead Afterpay’s respective merchant and consumer businesses, as part of Square’s Seller and Cash App ecosystems. Square will appoint one Afterpay director as a member of the Square Board following closing.
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