Published: Fri, May 18, 2018
Sci-tech | By Carrie Guzman

PayPal Announces Deal To Buy Sweden's iZettle For $2.2B

PayPal Announces Deal To Buy Sweden's iZettle For $2.2B

The startup has been compared to Square, a payments platform co-founded by Twitter chief executive Jack Dorsey that made it easy to take credit card payments using smartphones or tablets.

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.

Since Paypal now does not have a strong offline presence in these markets, it will look to leverage on iZettle to penetrate into these markets. The small businesses are active across 11 countries, mostly in Europe, as well as Mexico and Brazil.

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

"Combining our assets and expertise with a global industry leader like PayPal allows us to deliver even more value to small businesses to help them succeed in a world of giants", said iZettle CEO Jacob de Geer.

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The deal will also help PayPal provide a more comprehensive suite of services to its merchants.

For 2018, iZettle expects to generate gross revenues of Dollars 165 million, and to process USD 6 billion worth of total payment volume (TPV) on its platform.

A deal could be announced by the end of Thursday, according to the WSJ report, while Sky News, which reported the talks first, said it could come by Friday morning.

PayPal hopes the transaction will close in the third quarter, the company announced. The completion of this transaction is subject to customary closing conditions, including regulatory approvals.

Evercore is acting as sole financial adviser to PayPal, and Skadden, Arps, Slate, Meagher & Flom LLP and Roschier are acting as its legal advisers with regard to the transaction.

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