The deal reportedly amounts to $2.2 billion.
The acquisition significantly expands the company’s in-store presence around the world, strengthening the platform in an omnichannel retail environment.
Founded in 2010 by Jacob de Geer and Magnus Nilsson, iZettle provides mobile payments tools including a mini chip card reader and software for mobile devices.
PayPal’s President and CEO Dan Schulman commented on the acquisition in a post whose content is pasted below:
PayPal Agrees to Acquire iZettle
May 17, 2018 | Dan Schulman
I’m pleased to announce that today we signed an agreement to acquire iZettle, the leading small business commerce platform in Europe and Latin America. This is the largest acquisition in our company’s history and significantly expands our in-store presence around the world, strengthening our platform to help millions of small businesses around the world grow and thrive in an omnichannel retail environment.
Small businesses are the engine of the global economy and they are increasingly demanding a partner that can provide a one-stop solution to help them compete and win online, in-store and via mobile. The combination of PayPal and iZettle brings together iZettle’s in-store expertise, digital marketing strength and mobile point-of-sale technology with PayPal’s global scale, online and mobile payments leadership and trusted brand reputation to support merchants and consumers in more ways.
Based in Stockholm, iZettle was founded in 2010 by Jacob de Geer and Magnus Nilsson with a mission to help small businesses “succeed in a world of giants” by leveling the playing field against bigger retailers. iZettle revolutionized mobile payments with the world’s first mini chip card reader and software for mobile devices. Today, the company’s commerce solutions empower nearly half a million merchants across 12 countries and two continents to get paid, sell smarter and grow their businesses.
Jacob and his team bring best-in-class capabilities and talent that will expand our tremendous market opportunity. Upon closing, we will gain in-store capabilities in 11 markets, near-term in-store expansion opportunities into other existing PayPal markets, and the acceleration of omnichannel commerce solutions in Australia, U.K. and U.S.
Left to right: Jacob de Geer, CEO and Co-Founder of iZettle, Dan Schulman, President and CEO of PayPal, and Bill Ready, EVP, Chief Operating Officer of PayPal.
We expect to close the deal in the third quarter of 2018, at which time we will begin our integration efforts. Once the acquisition closes, Jacob de Geer will continue to lead iZettle, reporting to PayPal COO Bill Ready.
iZettle and PayPal are a strong strategic fit, with a shared mission, values and culture—and complementary product offerings and geographies. Together, we will help small businesses around the world grow and thrive in the global digital economy.
Dan Schulman, President and CEO, PayPal