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Jack Dorsey’s Square Buys Australian Financial Tech Firm Afterpay for $29 Billion

Afterpay’s ”buy now, pay later“ model became popular among users during the pandemic

Financial tech company Square, founded by Twitter CEO Jack Dorsey, will buy Australian company Afterpay in a $29 billion all-stock deal.

Afterpay offers a “buy now, pay later” credit option that allows users to purchase a product immediately and then pay for it later in four equal payments, an option that became increasingly popular during the pandemic. The sale will see Square adopt that option while Afterpay will gain a bigger foothold in the U.S. market.

Shareholders for Afterpay will hold an 18.5% share in the new company and will get 0.375 shares of Square class A stock for every share they own. Square closed on Friday at a price of $247.26/share and recently reported $4.68 billion in revenue for Q2 of 2021, way up from the $1.92 billion for the same quarter last year.

“Square and Afterpay have a shared purpose. Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers,” Square chief executive Jack Dorsey said in a statement.