Published: Fri, May 18, 2018
Money | By Arnold Ball

PayPal's 5 biggest acquisitions before its $2.2 billion iZettle deal

PayPal's 5 biggest acquisitions before its $2.2 billion iZettle deal

For 2018, iZettle expects to generate gross revenues of Dollars 165 million, and to process USD 6 billion worth of total payment volume (TPV) on its platform.

PayPal is planning to expand its empire, by acquiring iZettle, a startup that works in the financial-tech.

Jacob de Geer, the iZettle cofounder had penned a note which states the descision, penned ticking off the usual boxes about how the companies have similar cultures and visions and how the deal will allow iZettle to go further faster.

Founded in 2010 by de Geer and Magnus Nilsson, iZettle started out with a mobile-phone gadget for accepting credit card payments.

"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", said PayPal president Dan Schulman.

iZettle is a mobile payments company that sells card-readers, primarily to small businesses.

Announcing the takeover, the companies said that by joining forces with PayPal, iZettle would be able to accelerate its global expansion including to the US. "Upon closing, we will gain in-store capabilities in 11 markets, near-term in-store expansion opportunities into other existing PayPal markets, and the acceleration of omnichannel commerce solutions in Australia, U.K. and U.S".

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In parallel with preparing for the IPO, iZettle has been involved in talks with PayPal, who reached out and showed serious interest in the company late in the process.

TechCrunch reports that iZettle was hoping to raise $227 million on the Stockholm Nasdaq exchange, which would have valued the company at around $1.1 billion.

In addition, the deal will help PayPal to offer a better suite of services to its customers.

The company is still operating at a loss, according to IPO documentation.

IZettle expects to generate gross revenues of approximately $165 million Dollars in 2018, with approximately $6 billion USD of total payment volume (TPV) expected to be processed on its platform.

The deal is expected to be sealed by the third quarter of this year.

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