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US payment service Square wants to buy installment payment provider Afterpay

The Afterpay app. (Photo: Camilo Concha / shutterstock)

The US payment service Square wants to take over the Australian installment payment provider Afterpay. The deal with a value of a good 29 billion US dollars (24.4 billion euros) should be completed in the first quarter of next year.

Square wants to pay the purchase price entirely in its own shares, but could also pay one percent of the total value in cash. Afterpay shareholders are reported to receive 0.375 Square shares for each share. Based on the Square closing price on July 30 of 247.26 US dollars, this corresponds to a price of a good 126.21 Australian dollars per Afterpay share after the takeover, which, according to both companies, corresponds to a premium of a good 30 percent .

Square expects the takeover to open up new ways to move younger customers in particular away from traditional credit cards and towards installment payments. “Buy now, pay later” will be integrated into Square’s cash app. With the application, users have so far been able to send and receive money, keep an eye on their finances and invest in stocks or Bitcoin. In February, the company bought around 3,318 Bitcoin for $ 170 million. dpa

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