PayPal, the American company that operates worldwide in the online payment space, is acquiring iZettle, a Stockholm-based company that offers a range of payment and commerce solutions. PayPal closed the Nasdaq trading day in NY with a market value of about $94 billion based on its share price, which rose a percent to $80 in after-hours trades.
"Small businesses are the engine of the global economy and they are increasingly demanding a partner that can provide a one-stop solution to help them compete and win online, in store and via mobile". The small businesses are active across 11 countries, mostly in Europe, as well as Mexico and Brazil. "With almost half a million merchants on their platform, Jacob de Geer and his team add best-in-class capabilities and talent that will expand PayPal's market opportunity to be a global one-stop solution for omnichannel commerce".
A unit of eBay, PayPal stated that it's the biggest acquisition to date would strengthen its platform for handling payment transactions at small businesses and the company's stock jumped almost 2% when reports of the deal raised.
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Under the leadership of CEO Dan Schulman, the company has been expanding aggressively through acquisitions and partnerships with large banks and technology firms including Bank of America, JPMorgan Chase & Co, Apple and Facebook. The deal will give PayPal a bigger footprint in hundreds of thousands of stores, and bring it in even more direct competition with Square. It had advanced plans to go public.
The Stockholm-based startup founded in 2010 expected to handle about $6 billion in transactions this year, taking in gross revenue of approximately $165 million in the process. Upon closing, iZettle will become the European center of excellence for PayPal's in-store product and services offerings.
Nasdaq-listed PayPal is a giant in the sector, disclosing in first quarter results last month that it processed $49bn (£36.3bn) in mobile payments during the three months to 31 March.