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January 25, 2022

Zip in initial merger talks with Sezzle

Australian buy now, pay later (BNPL) firm Zip is reportedly in talks to acquire rival US-based Sezzle.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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by GlobalData
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The companies have confirmed that they are into initial merger talks.

The companies, however, added that there is no certainty that a transaction would materialise.

Over the past year, Zip has been making deals to expand to compete with its rival companies that include Klarna, reported Reuters.

Sezzle comes with a market capitalisation of around $303.5m, and Zip of around $1.38bn.

Zip said: “The Zip Board remains committed to ensuring any transaction delivers value to shareholders and will always be disciplined in its assessment of potential opportunities.

“It will only pursue transformational transactions that help accelerate the delivery of Zip’s broader strategic objectives such as enhanced scale in core markets, improved customer and merchant propositions and a faster path to profitability through significant synergy opportunities.”

Zip Co was set up by Larry Diamond and Peter Gray in 2013.

Founded by Charlie Youakim, Sezzle was listed on the Australian stock exchange in 2019.

BNPL businesses enable customers to get short-term interest-free loans. The sector has seen a high increase during pandemic.

The sector is witnessing consolidation. This month Jack Dorsey’s Block bought Afterpay for $39bn, while Latitude Financial has made a $330m acquisition offer for consumer finance group Humm, reported news.com.au.

In March last year, Zip branched into contactless payment with its Tap & Zip offering.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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