Science

PayPal in advanced talks to buy payments group iZettle

PayPal in advanced talks to buy payments group iZettle

Being the biggest ever acquisition for Paypal, the payment giant is obviously taking a huge bet by acquiring the Stockholm headquarter startup.

The agreement will allow PayPal to expand its presence in payments in physical stores worldwide and will mark the largest acquisition ever made by the U.S. company.

Sweden-based iZettle started out providing card readers to small businesses, making its mini white readers recognisable in many independent shops and cafes.

Stockholm-based iZettle is present in 11 countries and offers other services for small businesses such as lending.

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It was unclear on Thursday night whether Mr de Geer and his senior colleagues would remain with the business if a takeover by PayPal does go ahead, although sources indicated that they would be likely to.

"Combining our assets and expertise with a global industry leader like PayPal allows us to deliver even more value to small businesses to help them succeed in a world of giants", said iZettle CEO Jacob de Geer. It has since expanded into financing services, with a presence in Brazil, Mexico and Europe.

IZettle expects to generate gross revenues of approximately $165 million Dollars in 2018, with approximately $6 billion USD of total payment volume (TPV) expected to be processed on its platform. He was convinced that his company could continue to grow substantially under the new owner and that their cultures would be aligned.

The transaction, which is expected to be United States dollars 0.01 dilutive to PayPal full year adjusted earnings per share, is subject to the usual closing conditions, including regulatory approvals. J.P. Morgan Securities plc is acting as sole financial adviser to iZettle, while Gernandt & Danielsson is acting as its legal adviser.