$0

No products in the cart.

Buy now, pay later firm Zip to buy US rival Sezzle in $352 million deal

Bookmark (0)
To login to your account click here.
HomeLatest Platform NewsFinTech PlatformsBuy now, pay later firm Zip to buy US rival Sezzle in...

Buy now pay later (BNPL) firm Zip Co Ltd has said it would buy US-based Sezzle Inc in a A$491 million (approximately $352.59 million) deal, as it looks to further expand its reach in the United States and take on rivals such as Afterpay.

Sezzle shareholders would receive 0.98 Zip ordinary shares for each Sezzle stock, the Australian payments firm said, adding that it will own about 78% of the combined group. The company also expects the deal to be EBTDA and cash-flow positive during financial year 2024.

After seeing a meteoric rise during the COVID-19 pandemic when online shoppers preferred alternate sources of credit for purchases, the BNPL sector has consolidated rapidly, with Jack Dorsey-backed Block Inc’s $29 billion buyout of Afterpay in August 2021 being among the sector’s biggest deals.

Zip also announced on Monday a A$148.7 million share placement and a non-underwritten share purchase plan to raise up to A$50 million.

Shares of Zip and Australia-listed shares of Sezzle were halted for trading at 0051 GMT.

Separately, Zip posted half-year cash earnings before income taxes, depreciation and amortization to be a loss of A$108.1 million — in line with its own forecast of A$108.1 million — and missing RBC’s estimate of a A$39.7 million loss.

Related article:
Amazon's holiday forecast disappoints as labour, supply issues mount

The team at Platform Executive hope you have enjoyed the ‘[post_title]’ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Jan Wolfe and Mike Scarcella.

You can stay on top of all the latest developments across the platform economy, find solutions to your key challenges and gain access to our problem-solving toolkit and proprietary databases by becoming a member of our growing community. Platform Executive has two membership tiers, Community (FREE) and Premium ($195 per year), which offer different levels of access to our products and services.