Subject to closing conditions, Sezzle stockholders will be entitled to receive 0.98 Zip ordinary shares for every share of Sezzle common stock owned. Zip’s deal sets the implied price for Minneapolis-based Sezzle at approximately AUD 491m.
The proposed acquisition, which has been unanimously approved by both companies’ boards of directors, and the mergers and acquisitions committee of the board of directors of Sezzle, capitalises on Zip and Sezzle’s shared mission to financially empower the next generation.
The companies said it advances both their strategic objectives to be a global and US leader in the BNPL industry and to drive a high growth ecosystem that brings merchants and customers together.
Larry Diamond, co-founder and Global CEO of Zip, said, “We are delighted to be bringing Zip and Sezzle together under a transformational transaction that is expected to deliver immediate scale and enhanced growth, which will support our path to profitability. Combining with Sezzle, positions us as a leading global BNPL provider and prioritises our ability to win in the important US market.”
The transaction is expected to close in the third quarter of this year.
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