Australia-based consumer finance fintech Zip Xo has announced its plans to invest over $160m to assume complete ownership of two BNPL (buy now, pay later) companies.
Zip Xo had previously owned minority stakes in these two BNPL firms.
As Zip Xo expands its presence in the BNPL sector globally, it will pay $140m for the remaining shares in European operator, Twisto Payments. Furthermore, Zip will pay $21m to buy out Middle Eastern operator, Spotti.
Valued at $3.9bn, the Australian firm stated the move will help to bolster its presence in the large European market and emerging Middle Eastern market, which is considered to be one of the fastest growing global ecommerce regions.
Zip stated that it is yet to be determined whether it would make a payment for the stakes in each company by way of shares, cash or a mix of both.
The acquisition of Twisto is expected to close in Q4 2021, and the takeover of Spotti in Q3 2021.
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In 2020, Zip announced the acquisition of New York based buy now pay later service provider, Quadpay, for $403m.
Following this deal, Quadpay is claimed to have seen its annual transactions increase by over 200%.
In a statement, Zip said: “Zip has adopted a similar approach to Quadpay, which proved to be highly successful. By initially making low-risk minority investments, Zip is well placed to validate cultural fit and management alignment, stress test the business plan and identify synergies, and plan for integration.”
Upon completion of the deal, Twisto and Spotti will be integrated into Zip’s global single merchant interface (SMI), which offers instant access to merchants in 11 countries across five continents.
Zip is claimed to have two million customers in Australia and New Zealand.