Square, the payments firm of Twitter co-founder Jack Dorsey, will purchase buy now, pay later (BNPL) pioneer Afterpay for $29 billion.
The all-stock buyout would value the shares at A$126.21 ($92.65).
That means a payday of A$2.46 billion each for Afterpay’s founders, Anthony Eisen and Nick Molnar. China’s Tencent Holdings, which paid A$300 million for 5 percent of Afterpay in 2020, would pocket A$1.7 billion.
Acquiring Afterpay is a proof of concept moment for buy now, pay later, at once validating the industry and creating a formidable new competitor for Affirm Holdings, PayPal Holdings and Klarna,” Truist Securities analysts 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,” said Dorsey in the statement.
“Together we can better connect our … ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands.”
BNPL firms lend shoppers instant funds, typically up to a few thousand dollars, which can be paid off interest-free.
