Jack Dorsey’s Square will be acquiring Afterpay, which is a “buy now and pay later” firm in a deal worth $29 billion.
Jack Dorsey, CEO of Twitter Inc, is all set to purchase Afterpay, a company that offers an option to buy now and pay later to its clients while making bargains at various other platforms. Square will be acquiring the Afterpay company in a striking $29 billion which is publicized by the media as Australia’s biggest “buyout” to date.
Afterpay is one of the pioneering companies in the world having more than 16 million customers and is used by 100 million businesses all over the world.
Square All Set to Acquire Afterpay in a Deal Worth $29 Billion
Twitter Co-Founder and CEO Jack Dorsey’s Square will now be acquiring a buy now and pay later platform Afterpay in a whopping 29 billion dollar deal. The company will expand its operations through Afterpay which has a customer base spanning 16 million active consumers and is frequently used by 100 million businesses across the world.
Afterpay has confirmed that the board of directors associated with the firm have unanimously suggested the deal to their shareholders and have established an agreement to own 18.5% of the new company.
Afterpay has successfully ascertained a niche where credit-based payment ideas can be utilized to establish a profitable business. Afterpay offers a facility where users can make purchases first and pay later under a time limit which has been a source of massive popularity for consumers all over the world.
Twitter’s CEO Jack Dorsey has expressed his views on the acquisition and has commented that Square and Afterpay were created to conduct fair financial proceedings that are accessible to the masses in a simplified manner. Afterpay has built a strong brand image that can be utilized to achieve the desired results with optimum efficacy and safety.
Afterpay had recently acquired significant popularity in terms of transactions where it was noted that a considerable number of people, especially young professionals, and individuals have utilized the platform to purchase everyday essentials and equipment on a buy now and pay later format, because of growing coronavirus concerns.
The following agreement is said to accelerate the Australian firm proceedings and also help the company to scale work operations in America. Square too, has announced their second-quarter earnings stating the company’s gross profit which has increased to $1.14 billion since last year.
Afterpay’s novel move to offer credit-based payment options that allow the users to make payments in installments has made the company quite popular and prominent among other contenders. Shares of Afterpay have noticed a surge in prices by 19% after the news of acquisition went viral on various social media outlets.
Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.