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TransactionWatch – Week of June 1st – June 5th

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This Week’s M&A Overview

The importance of an eCommerce offering has been apparent amid the COVID19 crisis as consumers rapidly shift their buying behaviors online as opposed to in-person. This shift has evidently led to an increased focus on digital alternative payment methods, specifically buy now, pay later (BNPL) options. This week saw Zip’s acquisition of U.S.-based BNPL provider, QuadPay, for approximately $403 million as the company aggressively attempts to expand into the U.S. market. Zip, an Australian-based BNPL provider, obtains around 30% of Australia’s BNPL market and is seeking to expand its offering more internationally. The company suggests that the BNPL market will continue to evolve and grow, even amid the global pandemic. Prior to the acquisition, Zip had obtained a 15% stake in QuadPay last year and has since seen its customer base grow to more than 3.5 million along with 26,000 merchants. In addition, the company is now trying to raise $200 million to help further fuel its global expansion efforts. BNPL providers have seen an increase in customer and merchant adoption in recent years as buying behaviors continue to evolve.