Zip acquires Sezzle for USD 491 mln

Monday 28 February 2022 09:26 CET | News

Australia-based BNPL provider Zip has made an agreement to purchase Sezzle in a USD 491 million all-scrip merger.

The transaction offers 22% premium on Sezzle’s spot price and a 31.7% premium based on the 30-day volume weighted average price. Zip shareholders will own approximately 78% of the merged entity and Sezzle stockholders 22%.

To help pay for the acquistion, the company plans to raise USD 148.7 million from fully underwritten placement to eligible institutional, professional, and sophisticated investors, plus another USD 50 million from a non-underwritten share purchase plan at USD 1.90.

The combination of Zip and Sezzle is expected to result in pro forma 8.8 million customers and 60,500 merchants in the US, approximately 60% of the TTV of the combined business is estimated to be derived from the US, up from Zip’s 48% at the end of 2021, according to the press release. This agreement comes after the two companies first entered merger talks in January 2022.

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Keywords: BNPL, acquisition, funding, online payments, expansion
Categories: Payments & Commerce
Companies: Sezzle, Zip
Countries: World
This article is part of category

Payments & Commerce




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