PayPal Confirms Its Decision to Buy iZettle, Paying $2.2 Billion

Muriel Colon
May 18, 2018

Earlier this month, iZettle announced plans for an initial public offering and de Geer specifically said the company had no interest in a so-called dual-track process that would consider a sale as an alternative to the listing.

"When we think about the combinations and capabilities of PayPal and iZettle", Schulman added, they "set us apart from anyone else". The deal has been finalized by the company and PayPal would be paying $2.2 Billion for the acquisition.

Founded in 2010 by de Geer and Magnus Nilsson, iZettle started out with a mobile-phone gadget for accepting credit card payments.

Based in Sweden, iZettle has built a presence in Europe and South America that will allow PayPal to bring its platform to almost 500,000 stores in 11 new countries including France, Germany, Brazil and Mexico.

The deal will enable PayPal to expand its presence in in-store payments globally, and will mark the largest-ever acquisition by the United States fintech giant, Reuters reports.

Schulman described the merging of iZettle and PayPal as a "strategic fit" combining shared values and culture with complementary product offerings and geographies. Today, small-business owners around the world use iZettle's powerfully simple services to improve the speed and ease of payments at checkout, business management, sales analytics, customer engagement, and funding. The Stockholm-based company had been aiming to achieve a valuation of $1.1bn, but was presented with double that amount by PayPal.

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 deal will be closed in all-cash, and it is expected to help the company to provide a better service, worldwide.

The company is still operating at a loss, according to IPO documentation. The company expects to generate gross revenues of around $165m this year, with approximately $6bn of total payment volume expected to be processed on its platform.

JPMorgan Chase & Co. was sole financial adviser to iZettle, while PayPal worked with Evercore Inc.

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