Jack Dorsey’s Square in Australia’s biggest buyout

Jack Dorsey's Square in Australia's biggest buyout
Twitter co-founder Jack Dorsey. Source: GETTY IMAGES
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Daily US Times: Twitter co-founder Jack Dorsey’s digital payments platform Square has agreed to buy the Australian firm Afterpay.

The 29 billion US dollar deal is to be Australia’s biggest-ever buyout.

The offer is a more than 30% premium to Afterpay’s stock market closing price on Friday.

The agreement to take over ‘buy now, pay later’ firm will create an installments payment giant as the industry sees significant growth.

In a statement, Square co-founder and chief executive Jack Dorsey said: “Square and Afterpay have a shared purpose. 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 said in a statement that the company’s board has unanimously recommended the deal to its shareholders, who are expected to own around 18.5% of the new company.

Founded in 2014 by Australians Anthony Eisen and Nick Molnar, Afterpay is used by 100 million businesses around the world and has more than 16 million customers.

The Australian company has been seen as a key indicator of the prospects for the niche no-credit-checks online payments industry that has seen huge popularity last year amid coronavirus pandemic as more users, especially young people, opted to pay in installments for everyday items during this time.

The deal means that Afterpay will be able to expand more quickly in America. Its latest annual figures showed sales in the United States nearly tripled for the period to $8.15bn.

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