It’s official — Australian buy now, pay later (BNPL) firm Zip has announced a definitive agreement to acquire rival US BNPL fintech Sezzle. The deal values Sezzle at approximately $360 million (AUD 491 million).
The deal values Sezzle at approximately $360m (AUD 491m)
The move is designed to boost Zip’s global expansion strategy, in particular its foray into the US market.
Under the terms of the deal, which has been approved by the boards of both companies, Sezzle stockholders will receive 0.98 Zip shares for every share of Sezzle common stock owned.
Zip will also expand its board of directors, adding Sezzle CEO Charlie Youakim as executive director and Paul Lahiff and Mike Cutter as non-executive directors.
Upon closing of the deal, Youakim will become Zip’s president and CEO of the Americas and executive director and president of Sezzle.
Zip says both companies share a vision of providing customers the tools they need to become more “financially fearless”.
The two companies will continue to operate their products (and accounts) separately until the deal closes, which is expected by the end of Q3 2022.
Zip CEO and co-founder Larry Diamond says the “transformational transaction” will deliver immediate scale and enhanced growth.
The firm has spent big on several acquisitions to boost its global footprint over the past 20 months.
Last year, it snapped up the remaining shares in Twisto Payments and UAE-based Spotii Holdings.
The full acquisition of Twisto, worth $89 million, gives Zip access to 27 European Union countries through Twisto’s payment institution licence.
At the time, Zip said both transactions align with its global expansion plans and what it calls the “rapidly accelerating” global BNPL market.
The firm seeks to build a “single global BNPL solution across multiple markets”.
It first moved in September 2019 to acquire New Zealand technology platform PartPay in a $32 million deal. A year later it bought up US BNPL firm QuadPay for $296 million.
