Popular mobile payments platform Square announced today that it has agreed to acquire Australian financial technology company Afterpay via a multi-billion recommended court-approved “Scheme of Arrangement.”
The Jack Dorsey-led company said the deal would see it acquire all of Afterpay’s issued shares for $29 billion (A$39 billion) based on the closing price of Square common stock as of July 30th, 2021. The transaction is expected to take place in the first quarter of 2022 and paid in all stocks, should certain closing conditions be met.
The terms will see Afterpay shareholders receive a fixed conversion rate of 0.375 shares of Square Class A common stock for every Afterpay ordinary share they hold on the record date. The report noted that Square might decide to pay up to 1% of the total amount in cash.
