Square buys Afterpay for $39 BILLION Jack Dorsey Anthony Eisen and Mick Molnar

Twitter founder’s company Square to buy Afterpay for $39 BILLION in the biggest transaction in Aussie corporate history

  • Afterpay will merge with US digital payments giant Square in a $39billion deal  
  • Square will acquire all of the issued shares in Afterpay under the transaction 
  • Afterpay will be integrated into Square’s existing Seller and Cash App units
  • This will allow customers to manage instalment payments in Square’s Cash App 

Australian buy-now-pay-later group Afterpay will merge with US digital payments giant Square in a deal worth $39 billion.

The pair have entered into a scheme implementation deed under which Square will acquire all of the issued shares in Afterpay.

The transaction – which has been unanimously recommended by the Afterpay board barring no other superior offer emerging – is valued at $39 billion ($US29 billion) and will be paid in Square stock.

‘Square and Afterpay have a shared purpose,’ Square CEO and co-founder Jack Dorsey said in a statement on Monday.

Buy-now-pay-later giant Afterpay will merge with US digital payments giant Square in a deal worth $39 billion 

Afterpay's co-founders and co-CEOs - Anthony Eisen and Nick Molnar (pictured) - will join Square once the deal is completed in the first quarter of 2022

Under the merger, Afterpay will be integrated into Square's Seller and Cash App units. Pictured: Anthony Eisen

Afterpay’s co-founders and co-CEOs – Anthony Eisen (pictured right) and Nick Molnar (left) – will join Square once the deal is completed in the first quarter of 2022

‘Together we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands.’

Square said Afterpay would be integrated into its existing Seller and Cash App units, allowing merchants to offer BNPL options to customers at checkout.

Afterpay customers will be able to manage their instalment payments directly in Square’s Cash App and Cash App customers will be able to look up merchants and BNPL options within the app.

Under the deal, Afterpay shareholders will get 0.375 Square shares for each Afterpay share held.

Based on Square’s US closing price of $US247.26 per share on July 30, Afterpay shares have an implied value of $126.21 each – a premium of about 30 per cent to Friday’s close.

The deal is expected to be completed in the first quarter of calendar 2022, pending court approval of a scheme of arrangement.

Afterpay’s co-founders and co-CEOs – Anthony Eisen and Nick Molnar – will join Square once that’s done.

Jack Dorsey, chief executive officer of Twitter Inc. and Square Inc (pictured), said the merger will enable their ‘Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers’

Read more at DailyMail.co.uk