PayPal president Dan Schulman said: "This combination brings together iZettle's in-store expertise, recognised brand and digital marketing strength with PayPal's global scale, mobile and online payments leadership, and trusted brand reputation". In today's digital world, consumers want to be able to buy when, where and how they want.
By joining forces with PayPal, which operates in 200 countries, iZettle will be able to accelerate its worldwide expansion, including in the United States. Paypal expects this huge bet to pay off by giving it a formidable presence in the point-of-sales market and a better standing against strong competitors such as Square Inc and Stripe Inc.More news: Lacazette, Martial dropped from France World Cup squad [See full squad]
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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". The company forecast reaching EBITDA profitability by 2020 on a standalone basis.
Being the biggest ever acquisition for Paypal, the payment giant is obviously taking a huge bet by acquiring the Stockholm headquarter startup.
The transaction is expected to be approximately $0.01 dilutive to PayPal's previously communicated full year 2018 non-GAAP EPS. The deal will be an all-cash deal and is expected to be closed by third quarter of the current financial year. The completion of this transaction is subject to customary closing conditions, including regulatory approvals.