Jack Dorsey’s Square has announced they are planning to buy Australia’s Afterpay in a $39 billion deal

American financial services company Square is planning to buy Australia’s Afterpay in a $39 billion dollar deal in the first quarter of 2022

In the press release announcing the acquisition, Square said the moved will “Bring together two of the fastest growing global fintech companies to advance shared mission of economic empowerment and financial inclusion“.

“The transaction has an implied value of approximately US$29 billion (A$39 billion) based on the closing price of Square common stock on July 30, 2021, and is expected to be paid in all stock,” said Square.

Afterpay has recommended the transaction, with a current market value of $28 billion

Square says that the “acquisition aims to enable the companies to better deliver compelling financial products and services”.

“We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles,” said Jack Dorsey, Co-Founder and CEO of Square.

“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.”

“Square and Afterpay have a shared purpose.”

Twitter and Square SEO Jack Dorsey

Square plans to integrate Afterpay into its existing Seller and Cash App business units

Square says the merge will “enable even the smallest of merchants to offer BNPL at checkout, give Afterpay consumers the ability to manage their installment payments directly in Cash App, and give Cash App customers the ability to discover merchants and BNPL offers directly within the app.”

“Buy now, pay later has been a powerful growth tool for sellers globally”

Alyssa Henry, Lead of Square’s Seller business.

“We are thrilled to not only add this product to our Seller ecosystem, but to do it with a trusted and innovative team,” said Henry.

“The addition of Afterpay to Cash App will strengthen our growing networks of consumers around the world, while supporting consumers with flexible, responsible payment options,” said Brian Grassadonia, Lead of Square’s Cash App business.

About the two companies

Afterpay says it serves over 16 million consumers and nearly 100,000 merchants globally.

As of June 30, 2021, Afterpay serves more than 16 million consumers and nearly 100,000 merchants globally, including major retailers across key verticals such as fashion, homewares, beauty, sporting goods and more.