PayPal buys Swedish start-up iZettle for Dollars 2.2 bln

PayPal buys Swedish start-up iZettle for Dollars 2.2 bln

PayPal buys Swedish start-up iZettle for Dollars 2.2 bln

It marks the largest ever acquisition by California-based PayPal, which was spun out of eBay in 2015.

Founded in 2010 by Jacob De Geer and Magnus Nilsson, iZettle is a mobile payments company that offers small businesses with portable point-of-sale solutions and free sales overview tools.

It has a presence in 11 countries including Brazil and Mexico as well as across Europe - with its brand increasingly familiar in British coffee shops and restaurants.

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

According to a statement by the two companies, iZettle expects to generate gross revenue of about $165 million in 2018, with roughly $6 billion of total payment volume expected to be processed on its platform.

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PayPal said it hopes to be able to reap the advantages of the merger nearly immediately in certain areas, and that the financial benefits will kick in shortly after the deal closes, expected in the third quarter.

TechCrunch reports that iZettle was hoping to raise $227 million on the Stockholm Nasdaq exchange, which would have valued the company at around $1.1 billion.

"Jacob and his team bring best-in-class capabilities and talent that will expand our tremendous market opportunity". Today, the company's commerce solutions empower almost half a million merchants across 12 countries and two continents to get paid, sell smarter and grow their businesses. This is not the first time PayPal acquires startups with brilliant tech, but in this case, iZettle would have become a potential rival, had it raised enough funds via IPO. Close sources claim that the IPO filing forced Paypal management to speed up the acquisition process.

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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