We’ve got some breaking news on a company we just reported on the other day. iZettle – known as ‘The Square of Europe’ has agreed to be acquired by PayPal for $2.2B.
This is a big payday for the Stockholm based startup, as the deal is in all cash.
It’s also the most significant acquisition by PayPal. Previously, the largest transactions where the acquisition of Xoom in 2015 for $890 million, and the purchase of Braintree and Venmo for $800 million in 2013.
The timing is curious because as we mentioned the other day, iZettle had filed to go public on the Stockholm Nasdaq exchange to raise $227 million, which would have valued the company at around $1.1 billion.
According to Tech Crunch, the 2 companies had been speaking for years, it’s assumed the IPO filing added some urgency to the talks.
PayPal already operates in more than 200 countries around the world but this acquisition gives Paypal a considerable leg up in European payments and eCommerce.
CEO Jacob de Geer stay on to lead iZettle. He will report to PayPal’s COO Bill Ready. Others in iZettle’s exec team will also stay on to run the business, which will become a “center of excellence” for in-store and offline payments in Europe, PayPal said.