PayPal Agrees to $2.2 Billion Deal for European Payments Start-Up iZettle

PayPal boss Dan Schulman called the purchase a 'strategic fit'
Credit
Alamy

PayPal boss Dan Schulman called the purchase a 'strategic fit' Credit Alamy

The talks were earlier reported by Sky News.

PayPal has agreed to acquire iZettle, one of Europe's best known financial technology startups, for $2.2 billion, the companies said on Thursday.

The company was planning to raise about 2 billion Swedish crowns ($228 million) from the IPO.Established in 2010, iZettle is known for offering small businesses and individuals a way to take payments using mini credit card readers that turn smartphones or tablets into cash registers.

Upon closing, PayPal gains in-store capabilities in the following 11 markets: Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden.

"The acquisition of iZettle significantly expands PayPal's in-store presence, strengthening PayPal's platform to help millions of small businesses around the world grow and thrive in an omnichannel retail environment", the company said in a press release.

Schulman described the merging of iZettle and PayPal as a "strategic fit" combining shared values and culture with complementary product offerings and geographies.

By joining forces with PayPal, which operates in 200 countries, iZettle will be able to accelerate its worldwide expansion, including to the US, the companies said. "The combination of iZettle and PayPal will provide tremendous benefits to our merchants who will have access to an even wider range of tools to help them get paid, sell smarter and grow".

iZettle CEO Jacob de Greer and the company's management team will continue to lead the business, which expects to process US$6 billion in payments in 2018, the report said.

US-based Paypal was formerly part of eBay, but is now a standalone digital and mobile payments company.

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