Afterpay is accelerating growth with an acquisition in the UK

Friday 24 August 2018 13:30 CET | News

Australia-based fintech Afterpay Touch has announced its launch in the UK with the acquisition of payments company ClearPay.

The company also announced an equity raising of at least USD 108.1 million at USD 15.75 a share, a discount of almost 10%. Customers of ClearPay can purchase items up to GBP 450 and make repayments in three interest-free monthly installments.

Afterpay will acquire 90% of the issued shares in ClearPay for 1 million Afterpay shares. These last traded at USD 18.55. The fintech also has an option to acquire the remaining shares from the current owner, ThinkSmart.

The company’s business in the US has been building momentum with more than 800 retailer contracts signed and 150,000 registered customers having transacted. Afterpay started trading in the US in May 2018. Underlying sales was AUD 12 million in June 2018 and AUD 20 million in July 2018.

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Keywords: Afterpay, UK, ClearPay, acquisition, payments, equity, retailer contracts
Countries: World