According to a TechCrunch post, on August 2, 2021, today, Square gave out, that they are to buy an Australian buy now, pay later giant Afterpay for $29B.
The final price is based on the closing price of Square common stock on July 30, which was $247.26. Upon certain conditions, the transaction is expected to close in the first quarter of 2022.
Shareholders of Afterpay will get 0.375 shares of Square Class A stock for every share which is a price of about A$126.21 per share.
Square co-founder and CEO Jack Dorsey explained the reason for this purchase as they have a shared purpose. He said, “We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles”.
Afterpay’s co-founders and co-CEOs Anthony Eisen and Nick Molnar are going to join Square and help Afterpay’s with the merchant and consumer businesses.
The unity of these two companies can create an outstanding payment giant, as by June 30, Afterpay served more than 16 million customers and nearly 100,000 merchants all over the world.
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