PayPal buys Swedish startup iZettle for $2.2B

Business 5/17/2018, 11:48 PM
PayPal buys Swedish startup iZettle for $2.2B

Payment processing company PayPal Holdings Inc. confirmed it has reached a deal to acquire Swedish payment startup iZettle for $2.2 billion in cash, the company's biggest transaction ever. Recently, Izettle announced it had planned to pursue an Initial Public Offering (IPO) on Nasdaq in Stockholm later in the year, expecting to raise $227 million.

"Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile," said Dan Schulman, president and Chief Executive Officer of PayPal.

The Swedish startup specializes in equipping small businesses with digital payment capabilities, such as mobile card readers, similar to its American competitor Square Inc. It has a strong market presence in the European Union, with an operation in Mexico as well. Among investors in the startup are Mastercard, American Express and Santander.

The deal is expected to be finalized during the third quarter of 2018.

PayPal's shares ended today's trading session 1.76% in the green, with a rise of 0.56% in aftermarket trading.

Breaking the News / NI

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