Zip to buy BNPL Rival Sezzle in $352m deal
Buy Now, Pay Later (BNPL) Zip and Sezzle have announced a definitive agreement under which Australia-based Zip will acquire Sezzle, according to a press release.
The release notes that Zip’s deal sets the implied price for Minneapolis-based Sezzle at A$491 million ($352 million).
The combination of the two companies will have a total of 8.8 million customers and more than 60,000 merchants in the United States.
And the release says the merger will advance the companies’ goal of being a global leader in the BNPL industry and help fund the next generation of consumers.
“We are excited to bring Zip and Sezzle together in a transformational transaction that is expected to deliver immediate scale and increased growth, which will support our path to profitability. The association with Sezzle positions us as one of BNPL’s leading global suppliers and prioritizes our ability to win in the important US market,” said Larry Diamond, co-founder and global CEO of Zip.
Meanwhile, Charlie Youakim, executive chairman, co-founder and CEO of Sezzle, said the company is looking forward to the merger.
“We are extremely excited to create a leader in the financial services industry by partnering with Zip and its management team,” he said.
He said he believed the transaction would “position us to win in the United States and around the world.”
Read more: 55% of local businesses offer BNPL online, but only 5% offer it in-store
PYMNTS previously wrote that customers are more likely to use BNPL when shopping online, rather than in a physical store.
This was true in four retail segments, including big box stores, department stores, luxury and specialty stores, and local businesses.
According to a recent PYMNTS study, it could simply come down to availability – BNPL is offered for around half of consumers’ recent online purchases, while it is available for less than a fifth of in-store purchases.