Twitter’s Dorsey leads blockbuster $29 bln buyout of Australian BNPL giant Afterpay

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  • 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…

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