PayPal, the American company that operates worldwide in the online payment space, is acquiring iZettle, a Stockholm-based company that offers a range of payment and commerce solutions.
The deal is expected to close in Q3 2018, and Jacob de Geer, the Co-founder and CEO of iZettle, will stay on to lead the company, announced PayPal President and CEO Dan Schulman in a statement. Jacob will be reporting to PayPal COO Bill Ready.
Dan Schulman said in the statement, “iZettle and PayPal are a strong strategic fit, with a shared mission, values, and culture – and complementary product offerings and geographies. Together, we will help small businesses around the world grow and thrive in the global digital economy.”
PayPal is shelling out $2.2 billion for the deal and it is going to be an all-cash transaction. Dan announced that it is the largest acquisition in PayPal’s history and that it will significantly expand the company’s “in-store presence around the world, strengthening our platform to help millions of small businesses around the world grow and thrive in an omnichannel retail environment.”
PayPal’s last acquisition was in 2017 when it acquired Swift Financial in August that year. Swift Financial provides small business owners with working capital and was acquired for an undisclosed amount.
iZettle was founded in 2010 by Jacob de Geer and Magnus Nilsson, and a year later they launched their first app service. It was the first company to develop a chip card reader. The chip-card reader and its app for smartphone-based mobile commerce meet international security standards. iZettle’s service is available in 12 countries which includes United Kingdom, Finland, Denmark, Germany, Italy, Netherlands, Spain, Italy, Germany, and Brazil, among others.
The deal is going to add value to PayPal and help them expand to new markets, a sentiment Dan echoed in his statement, “Jacob and his team bring best-in-class capabilities and talent that will expand our tremendous market opportunity. 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 the U.S.”