The deal will enable PayPal to expand its presence in in-store payments globally, and will mark the largest-ever acquisition by the California-based company.
It has a presence in 11 countries including Brazil and Mexico as well as across Europe - with its brand increasingly familiar in British coffee shops and restaurants. PayPal also gains near-term in-store expansion opportunities into other existing PayPal markets, and acceleration of omnichannel commerce solutions in Australia, U.K. and U.S.
"Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile", said PayPal's chief executive, Dan Schulman.
"We believe that the listing will support our continued growth, our strategy and provide us with improved access to capital markets", CEO Jacob de Geer told CNBC at the time.More news: Memory Transplant Successfully Done on Snails
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The Stockholm-based company had been aiming to achieve a valuation of $1.1bn, but was presented with double that amount by PayPal. Upon closing, iZettle will become the European center of excellence for PayPal's in-store product and services offerings. Today, the company's commerce solutions empower almost half a million merchants across 12 countries and two continents to get paid, sell smarter and grow their businesses.
FORMER EBAY BAE PayPal has announced that it will buy mobile payment company iZettle in a multi-billion dollar deal. The company said it expects to reach profitability by the year 2020.
Nasdaq-listed PayPal is a giant in the sector, disclosing in first quarter results last month that it processed $49bn (£36.3bn) in mobile payments during the three months to 31 March.
The transaction is expected to be approximately $0.01 dilutive to PayPal's previously communicated full year 2018 non-GAAP EPS.