Zip Co to acquire “Buy Now, Pay Later” provider QuadPay

Maria Nikolova

The acquisition implies an enterprise value of approximately US$269 million for QuadPay.

A day after ASX placed the securities of digital retail finance and payments services provider Zip Co Ltd (ASX:Z1P) in trading halt at the request of the company, Zip announces that it has entered into an agreement to acquire the remaining shares in the New York based “Buy Now, Pay Later” (BNPL) provider QuadPay Inc. for scrip consideration.

QuadPay stockholders will be entitled to receive up to a maximum of approximately 119m fully paid ordinary shares of Zip, equivalent to 23.3% of the issued share capital of Zip at completion. The QuadPay Acquisition implies an enterprise value of approximately US$269 million (or AU$403m) for QuadPay and is accretive for Zip on both a total transactions volume and revenue basis.

The deal is set to give Zip access to the world’s largest retail market – QuadPay is one of the leading BNPL platforms in the US, the world’s largest retail market during a time when interest-free instalments are transforming the way people pay.

Once the acquisition is completed, the combined group will have operations across the world in five countries (AU, NZ, US, UK and SA) with combined annualised TTV of AU$3 billion, annualised revenue of AU$250 million, 3.5 million customers and 26,200 merchants.

As the largest stockholder of QuadPay other than its co-founders, Zip is already highly familiar with the QuadPay management team and business.

QuadPay’s team is New York headquartered and led by co-founders and joint CEOs Adam Ezra and Brad Lindenberg, who will join the Zip global leadership team, with ultimate responsibility for scaling the US business. Retention and performance equity has been offered, linked to aggressive growth targets.

Also today, Zip announces that it has entered into an agreement with CVI Investments, Inc., an affiliate of Heights Capital Management, which is an affiliate of the US-based Susquehanna International Group (SIG) to raise up to AU$200 million by way of the issue of convertible notes and the exercise of warrants. The convertible notes have an initial conversion price of AU$5.53287, a 50% premium to the 1-day volume weighted average price (VWAP) of Zip’s Shares on 29 May 2020, while the warrants have an initial exercise price of AU$5.1639, a premium of 40% to such VWAP.

SIG is one of the world’s largest privately-held financial services firms with over 2,000 employees in six countries. Founded in 1996, Heights Capital Management (Heights) invests SIG’s internal capital through direct investments in listed companies in the U.S., Europe, and Asia. Heights has supported many leading companies and manages a diverse investment portfolio of high-growth small to medium-sized companies. SIG has also made investments in Bytedance (parent company of Tik Tok), Credit Karma and Fundera.

Read this next

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

<