Square, Inc. and Afterpay Limited announced that they have signed a Scheme Implementation Deed. In this agreement, Square has agreed to purchase all of Afterpay’s issued shares under a proposed court-approved Scheme of Arrangement.
The deal is expected to be paid in all stock of about US$29 billion based on the closing price. The merger will allow the companies to deliver more enticing financial goods and services to more people. The transaction is expected to be closed in the first quarter of 2022.
“We founded our company to make the financial system more fair, accessible, and inclusive” said Jack Dorsey, Co-Founder and CEO of Square. “By working together, we can further link our Cash App and provide consumers with more appealing products” he added.
“Buy now, pay later has proven to be a great tool for sellers” Alyssa Henry said, Square’s Seller business lead. “We’re ecstatic to not only bring this product to our Seller ecosystem, but also to have a forward-thinking team” she added.
“Inclusion of Afterpay to Cash App will reinforce the increase in consumers” Brian Grassadonia said, Lead of Square’s Cash App business.
“By integrating with Square, we will be able to expand globally,” said Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs.
Outcomes of the collabration
Complementary businesses of Square and Afterpay, when combined, provide many factors for growth. Few of them are enhancing the ecology of both Seller and the Cash App, boosting Afterpay’s value, distinction, and scale.
Following the closing of the deal, Afterpay’s Co-Founders and Co-CEOs will join Square and assist manage Afterpay’s businesses.
With a best-in-class solution and a strong cultural alignment with Square, Afterpay is an industry leader. As of June 30, 2021, Afterpay had over 16 million customers and 100,000 merchants worldwide, including in fashion, homewares, etc.