PayPal snaps up Swedish rival iZettle for this much

PayPal snaps up Swedish rival iZettle for this much

PayPal snaps up Swedish rival iZettle for this much

Founded in Stockholm in 2010, iZettle claims to have revolutionised mobile payments with the world's first mini chip card reader and software for mobile devices.

The all-cash deal will save iZettle from going through all the bother of a stock market listing; the Swedish company had flagged its intention earlier this month to float on the Stockholm Nasdaq exchange. The company is on track for $165 million in revenue this year, up 60 percent from a year ago, while losses appear to be narrowing.

The acquisition "significantly expands PayPal's in-store presence, strengthening PayPal's platform to help millions of small businesses around the world grow", CEO Dan Schulman said in a statement.

Jacob de Geer, the chief executive officer of iZettle, will stay on-board to lead the business, reporting to Bill Ready, the chief operating officer of PayPal.

Upon closing of the deal, PayPal will gain in-store capabilities in Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. The deal expands PayPal's in-store expansion opportunities in its current markets and help the company push omnichannel commerce services in Australia, the United Kingdom and the US. Other iZettle officials will stay on, as the company is going to become a "center of excellence" for in-store and offline payments in Europe, according to PayPal.

"The combination of PayPal and iZettle brings together iZettle's in-store expertise, digital marketing strength and mobile point-of-sale technology with PayPal's global scale, online and mobile payments leadership and trusted brand reputation, to support merchants and consumers in more ways", Schulman said.

US-based PayPal, a unit of eBay, said that its biggest acquisition to date would strengthen its platform for handling payment transactions at small businesses, particularly in Europe and Latin America. The sources say that iZettle's plan to file for IPO was what made the deal appear so quickly. J.P. Morgan Securities plc is acting as sole financial adviser to iZettle, while Gernandt & Danielsson is acting as its legal adviser.

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