Square acquires Afterpay for $29 billion

Square will make the next big deal in the high-tech industry. The company has officially confirmed its plans to acquire Afterpay Limited. The financial parameters of the deal reach 29 billion dollars, and the amount will be transferred in full in the form of shares. The cost of the acquisition is calculated based on current quotes on the stock exchange.

Afterpay is an Australian company that offers a "Buy Now Pay Later" (BNPL) platform, which allows consumers to buy goods to pay for them later. The service is currently used by more than 16 million consumers and is supported by 100,000 retailers and businesses worldwide.

The deal will allow Square to improve its ecosystem and Cash app capabilities. Benefits will include even more options for managing finances and payments, as well as opening new outlets online. At the same time, Afterpay's technology will help it reach an even larger audience.

BNPL represents an attractive opportunity for Square, given the changing preferences of consumers, who are already shifting their focus away from traditional credit. Technology offers retailers new opportunities to increase sales and drive faster economic growth.

The strategic partnership between Square and Afterpay will make them more competitive with other services in the category. Afterpay's co-founders and CEOs will join Square, with one of them becoming a board member. This will accelerate the integration of their services.

The deal is expected to be closed officially in the first quarter of 2022.

Source: theverge