Digital funds large PayPal is to swallow up Swedish monetary know-how start-up iZetttle for $2.2bn (£1.6bn).
The announcement got here after Sky Information revealed that the 2 firms have been in superior talks.
It marks the most important ever acquisition by California-based PayPal, which was spun out of eBay in 2015.
The value being paid by PayPal – itself valued at greater than $90bn (£66bn) – is double the valuation that iZettle was reported to be in search of from an inventory on Nasdaq Stockholm.
iZettle is finest identified for providing small companies a mini bank card reader that may flip smartphones and tablets into cost registers.
It has a presence in 11 international locations together with Brazil and Mexico in addition to throughout Europe – with its model more and more acquainted in British espresso outlets and eating places.
iZettle has practically half 1,000,000 retailers on its platform and expects to generate gross revenues of $165m (£122m) in 2018, processing complete funds of round $6bn (£four.4bn).
Asserting the takeover, the businesses stated that by becoming a member of forces with PayPal, iZettle would be capable to speed up its worldwide enlargement together with to the US.
Jacob de Geer, iZettle’s chief govt, stated the deal would “present great advantages to our retailers who can have entry to an excellent wider vary of instruments to assist them receives a commission, promote smarter and develop”.
PayPal boss Dan Schulman stated: “Small companies are the engine of the worldwide economic system and we’re persevering with to increase our platform to assist them compete and win on-line, in-store and by way of cell.”
He stated the tie-up with iZettle was a “strategic match”.
The deal underlines the fast-changing nature of the world’s digital funds sector.
Within the UK, FTSE 100 funds group Worldpay was acquired final yr by America’s Vantiv.
Nasdaq-listed PayPal is a big within the sector, disclosing in first quarter outcomes final month that it processed $49bn (£36.3bn) in cell funds through the three months to 31 March.