Square Inc (NYSE: SQ) said it plans to purchase the “buy now, pay later” service provider Afterpay Limited, which is publicly listed in Australia.
What Happened: The Jack Dorsey-led company announced Sunday that it had entered into a Scheme Implementation Deed — under which it will acquire all issued shares in Afterpay through a recommended court-approved Scheme of Arrangement.
The deal is valued at AUD 39 billion, or $29 billion, based on the closing price of Square common stock on Friday, and will to be paid for all in stock.
“Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands,” Dorsey said in a statement.
The purchase is expected to close in the first quarter of the calendar year 2022.
See Also: How To Buy Square (SQ) Shares
Square shares closed 3.14% lower at $247.26 in Friday’s regular session and fell 0.51% in the after-hours trading.
At press time, Afterpay’s shares traded 23.65% higher at $87.74 in Sydney.
Why It Matters: Square said it plans to integrate Afterpay into its existing Seller and Cash App business units, which would allow even the “smallest of merchants” to offer BNPL at checkout.
Afterpay customers will gain the ability to manage their installments directly through Cash App, while Cash App customers can discover merchants and BNPL offers through the app itself.
Apple Inc (NASDAQ: AAPL) is reportedly working on a BNPL partnership with Goldman Sachs Group Inc (NYSE: GS), as per Bloomberg.
See Also: Apple Card — Once Accused Of Discriminating Against Women — Has Now Find Major Customer Base In Them
Apple’s service called “Apple Pay Later” would allow customers to pay for any Apple Pay purchase in installments and compete against similar services offered by Affirm Holdings Inc (NASDAQ: AFRM) and PayPal Holdings Inc (NASDAQ: PYPL).
Read Next: Cramer Says Affirm Is A Buy Despite Apple Threat
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