The online payment company purchased the Swedish payment company iZettele for $ 2.2 billion. North 83, a 7% stake in the Swedish company, will win the exit
The price of the deal is almost 13 times that of EZTEL’s 2018 profit, which is $ 165 million. In recent weeks, the Swedish company has issued a prospectus for an IPO, in which it planned to raise $ 227 million at an estimated company value of $ 1.1 billion.
IZettle has been deployed in many countries in Europe and Latin America, and its acquisition is expected to connect the American digital payment giant to hundreds of thousands of retail chains around the world. In fact, the acquisition gives PayPal a network of hundreds of thousands of physical payment points, which completes its primary ability to pay online.The move will enable PayPal to compete against Square, the outstanding payment point company.
This is the largest deal in the history of PayPal. In 2015, the company acquired Xoom for $ 890 million, and in 2013 acquired Braintree and Venmo for $ 800 million. “The combination of PayPal and iZettle is a strategic combination that will enable PayPal to extend its service to a world that seeks multi-channel global service in one product,” said Dan Shulman, CEO of the Tel Aviv Stock Exchange.
PayPal has 237 million registered and active accounts worldwide and operates in 202 countries using 100 different currencies. iZettle was founded in 2010 and developed a smart card payment technology that allows card reader payment.