PayPal $2.2 billion acquisition of iZettle

Overview:

• PayPal, the American financial services company, has agreed to acquire financial technology firm, iZettle, for $2.2 billion.
• The acquisition comes only 10 days after the the Swedish business announced it intended to IPO; a deal which has now been aborted.
• Founded in Stockholm in 2010, iZettle has become a significant player in the mobile payments business, notably working on the world's first mini-chip card reader. 
• The acquisition of iZettle is expected to significantly widen PayPal's online, in-store and mobile presence. Upon closing the deal PayPal will attain in-store capabilities across eleven news markets: Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. 
• Evercore is acting as sole financial adviser to PayPal, while JP Morgan Securities is representing iZettle.
• The transaction is expected to close in the third quarter of 2018, subject to regulatory approvals. PayPal and iZettle will continue to operate independently until close.

Prin Shasiharan - Researcher