Published By : 18 May 2018 | Published By : QYRESEARCH
PayPal has set a new benchmark in the field of point-sale-transactions and payments, as it looks forward to give a tough competition to its rivals such as Square, Strip, and others. And it could probably achieve this by buying the lucrative Startup iZettle for an all cash deal for US$2.2 bn.
More Information about the PayPal’s Latest Acquisition
The company confirmed that it will buy iZettle, which is based in Stockholm, and is commonly known as the ‘Square of Europe’. The deal is expected to be closed in 2018’s third quarter. Even after the deal is made, iZettle’s co-founder and CEO Jacob de Geer will stay on board to lead the company. His reporting will directly be to PayPal’s COO Bill Ready. Apart from de Geer, other executives will stay on board too, for running the business. As per reports, the decision of this buyout will simplify in-store and offline payments in Europe, thus making them efficient too.
This buyout comes just after iZettle had filed for an IPO earlier in the month to scale out its business. It initially had raised about US$ 227 million on the Stockholm Nasdaq exchange, which could have been of great value to the company at about US$ 1.1 bn.
Paypal itself has a market cap of about US$94 bn, and its last earnings consisted of at least US$7.8 bn in cash, cash equivalents, and investments. This story itself tells how easy it must have been for the company to keep funds ready for any future deal like buying out iZettle. This acquisition could be the most humongous ever made by PayPal. Regarding iZettle, the company already has its base set up in 12 regions, which can highly benefit PayPal from the perspective of good geographical dominance. The latter company already has been expanding gradually all over the world in recent times.