Aug 2 (Reuters) - Square Inc (SQ.N) will buy Australia's Afterpay Ltd (APT.AX) for about $29 billion in an all-stock deal as the U.S. fintech fir

Square to buy Afterpay for $29 bln as buy now, pay later booms

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2021-08-01 23:00:05

Aug 2 (Reuters) - Square Inc (SQ.N) will buy Australia's Afterpay Ltd (APT.AX) for about $29 billion in an all-stock deal as the U.S. fintech firm looks to leverage burgeoning popularity of buy now, pay later (BNPL) credit options.

The deal will create an online payments powerhouse and help accelerate Afterpay's growth in the key United States market as well as globally, the companies said on Monday.

Afterpay has been the bellwether of the niche online payments sector which burst into the mainstream last year as more people chose to pay in instalments for everyday items during the pandemic.

"Square and Afterpay have a shared purpose ... Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers," Square chief executive Jack Dorsey said.

Afterpay shareholders will get 0.375 shares of Square class A stock for every share they own, implying a price of about A$126.21 per share based on Square's Friday close, the companies said.