PayPal in advanced talks to buy Sweden's iZettle

PayPal buys Swedish start-up iZettle for $2.2bn in its biggest ever deal

PayPal has agreed to acquire iZettle, a leading European fintech startups, for $2.2 billion, the companies said on Thursday.

iZettle technology operates similarly to that of Square, Inc., the California-based financial services and mobile payment company founded by Twitter CEO Jack Dorsey. The chip-card reader and its app for smartphone-based mobile commerce meet global 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.

iZettle CEO Jacob de Greer and the company's management team will continue to lead the business, which expects to have gross revenues of $165 million this year, up from $110 million in 2017.

After the deal closes, PayPal will gain a presence in stores located in 11 new markets: Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden.

This combination brings together iZettle's in-store expertise, recognized brand and digital marketing strength with PayPal's global scale, mobile and online payments leadership, and trusted brand reputation.

"Small businesses increasingly want a full suite of capabilities across channels, a one-stop stop", Dan Schulman, chief executive officer of PayPal (pypl), said in an interview.

PayPal and iZettle were not immediately available for comment. "With almost half a million merchants on their platform, Jacob de Geer and his team add best-in-class capabilities and talent that will expand PayPal's market opportunity to be a global one-stop solution for omnichannel commerce".

The deal will have forced PayPal's hand for years.

The transaction, which is expected to be Dollars 0.01 dilutive to PayPal full year adjusted earnings per share, is subject to the usual closing conditions, including regulatory approvals. "But this is a very exciting way for the company to continue its vision".

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