Aussie BNPL fintech Afterpay expands into Europe by acquiring Pagantis
ASX-listed BNPL fintech Afterpay has announced the acquisition of Spain-based Pagantis for €50 million (AU$82 million) to expand its operations into Europe. Melbourne-based Afterpay’s subsidiary Clearpay EU has entered a Share Purchase Agreement with NBQ Corporate SLU to purchase 100% shares of Pagantis SAU and PMT Technology SLU (together known as Pagantis).
Spanish fintech Pagantis currently offers its range of traditional credit and buy now pay later services across Spain, Italy and France. With this acquisition, Australian buy now pay later darling Afterpay will be equipped to expedite its expansion in Spain, Italy, France as well as Portugal with local language compatibility.
The acquisition is expected to be completed in or before December 2020 and depends on the regulatory approval of the Bank of Spain.
Details of acquisition of Pagantis by Afterpay
After the acquisition, the existing technology of Pagantis will be re-configured to offer Afterpay’s core product and the business will be rebranded as Clearpay. Additionally, the existing consumer fee instalment and credit card offerings of Pagantis will not be continued after the completion of the acquisition. However, possession of the existing loan book will be with NBQ and is not included in the transaction.
NBQ Corporate SLU is to receive a minimum €50m in consideration, which is subject to customary adjustments, as a part of the agreement. The purchase will be made in two installments and the payable are as follows:
- €5 million will be paid in cash at completion of the acquisition
- The amount of €45 million in cash will be payable three years post completion.
The deferred consideration can exceed €45 million and any excess will be payable in cash or in the form of Afterpay share (provided the equity value of Pagantis exceeds €45 million after 3 years of completion).
BNPL fintech Afterpay’s share surge post the news of Pagantis acquisition
The share prices of Afterpay (ASX:APT) soared by 4.79% after the company announced the acquisition of Pagantis. Anthony Eisen, CEO and MD of Afterpay said the company’s momentum to date has given them the confidence of accelerating its expansion into new and promising regions.
Acquiring Pagantis gives them the necessary regulatory licencing, infrastructure and resourcing to speed up the launch of Afterpay into promising countries in Southern Europe and much more, says Mr Eisen. Entering into such globally relevant markets like the UK and the US and seeing their growth outgrow what they experienced in their more mature Australian market validated their product’s appeal on a global scale, he adds.
Pagantis currently has a database of 150,000 customers and 1400 active merchants. The Founder and CEO of Pagantis, Mr Rolf Cederström will continue to lead the new European team and the company’s existing products will be discontinued.
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Image Courtesy: Pagantis, Afterpay