Square, Inc. and Afterpay Limited entered into a Scheme Implementation Deed to acquire all issued shares in Afterpay by a court-approved scheme, according to a news release by Square on Sunday.

  • The transaction has an inferred value of close to $29 billion based on the closing price of Square common stock on July 30, 2021.
  • The acquisition aims at helping both corporations to deliver improved compelling financial products and services to expand access to more consumers and grow incremental revenues.
  • Afterpay will accelerate Square’s strategic priorities for its Seller and Cash App ecosystems. Square plans to integrate Afterpay into its existing Seller and Cash App business units.
  • The addition of the Afterpay to Cash App will strengthen our growing networks of consumers globally while supporting consumers with flexible, responsible payment options.

Square believes Afterpay will add to gross profit growth with a slight decrease in Adjusted EBITDA margins expected in the first year after the deal. SQ down -3.08%,  APT up 18.77%