- Square offers 30% premium for Afterpay
- Afterpay board unanimously recommends deal
- Afterpay U.S. sales soar in fiscal 2021
SYDNEY, Aug 2 (Reuters) – Square Inc (SQ.N), the payments firm of Twitter Inc (TWTR.N) co-founder Jack Dorsey, will purchase buy now, pay later (BNPL)pioneer Afterpay Ltd (APT.AX) for $29 billion, creating a global transactions giant in the biggest buyout of an Australian firm.
The takeover underscores the popularity of a business model that has upended consumer credit by charging merchants a fee to offer small point-of-sale loans which their shoppers repay in interest-free instalments, bypassing credit checks.
It also locks in a remarkable share-price run for Afterpay, whose stock traded below A$10 in early 2020 and has since soared as the COVID-19 pandemic – and stimulus payments to a workforce stuck at home – saw a rapid shift to shopping online.
The all-stock buyout would value the shares at A$126.21 ($92.65), the companies said in a…