The US electronic payment company PayPal has announced that it has acquired the iZettle for $ 2.2 billion, the largest deal in US history.
The announcement came weeks after iZettle unveiled its plan to float through the IPO on the Stockholm Stock Exchange to increase its capital and increase its capacity to expand.
IZettle, the Swedish company, was founded in 2010 to provide e-payment services for small businesses. Its customers have reached about half a million merchants in 11 countries around the world.
"Small businesses are the engine of the global economy and we are continuing to expand our business to help them compete online, online, mobile or store," said Dan Shulman, President and CEO of PayPal.
He added that the acquisition of iZettle, the leading small business platform in Europe and Latin America, is the largest acquisition in the company's history and is expected to contribute significantly to expanding their presence in stores around the world, as well as enhancing the role of the platform in helping millions Small businesses to grow and prosper in retail.
In 2015, PayPal acquired Xoom, an emerging money transfer company, for a $ 890 million deal.
Once the acquisition of iZettle is completed in the third quarter of 2018, the Swedish company will continue to operate under the leadership of Jakob De Gere, co-founder and CEO of the Swedish company, to operate iZettle as an integral part of PayPal's merchant services, .
Sweden's iZettle expects to generate revenues of up to $ 165 million in 2018 and expects its online payment to reach $ 6 billion.
The Swedish company has achieved a CAGR of 60% between 2015 and 2017, while it expects to post EBITDA by 2020.
Evercore was the sole financial advisor to PayPal, while Skadden (Arps), Slate (Meagher & Flom LLP) and Roschier worked as legal advisors to the deal.
JPMorgan Securities acted as sole financial advisor to iZettle and Gernandt & Danielsson as its legal advisor.
PayPal has more than 237 million active accounts in 200 markets around the world.
The UK’s Competition and Markets Authority (CMA) gave the green light approval to PayPal’s acquisition of POS terminal company iZettle, as paypal now will star growing business and takes another step after PayPal's divorce from eBay.
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