Science

PayPal acquires Swedish startup iZettle for $2.2 billion ahead of IPO

PayPal acquires Swedish startup iZettle for $2.2 billion ahead of IPO

The deal expands PayPal's in-store expansion opportunities in its current markets and help the company push omnichannel commerce services in Australia, the United Kingdom and the US.

The digital payments giant PayPal Holdings is in advanced talks about a takeover of iZettle in a move that would gatecrash one of the European technology sector's biggest stock market flotations.

The firm iZettle was founded in Sweden, providing credit card readers to small businesses.

PayPal is preparing to take over Swedish payments app iZettle, just a week after it announced plans to float.




Schulman described the merging of iZettle and PayPal as a "strategic fit" combining shared values and culture with complementary product offerings and geographies.

iZettle, headquartered in Stockholm, is present in 11 countries, including Brazil, and offers other services to small businesses as loans.

Since separating from online marketplace eBay in 2015, PayPal has reshaped itself from mostly processing transactions for its parent company online to offering a suite of digital payment services across the world. The two companies will continue to operate independently until close.

Announcing its IPO plan last Tueday, Jacob de Geer, the CEO and co-founder, said: "The IPO will provide us with improved access to capital markets to facilitate our continued growth and help us strengthen our profile with merchants, key business partners and in the fierce competition for talent". J.P. Morgan Securities plc is acting as sole financial adviser to iZettle, while Gernandt & Danielsson is acting as its legal adviser.