At close, PayPal will get in-store capabilities in 11 markets, including Brazil, Denmark, Finland, France, Germany, Italy, Mexico, the Netherlands, Norway, Spain and Sweden. The deal expands PayPal’s in-store expansion opportunities in its current markets and help the company push omnichannel commerce services in Australia, the UK and the US.
For 2018, iZettle expects to generate gross revenues of USD 165 million, and to process USD 6 billion worth of total payment volume (TPV) on its platform. From 2015 to 2017, revenues at iZettle have grown at a CAGR of 60 percent. The company forecast reaching EBITDA profitability by 2020 on a standalone basis. Synergies are expected from cross-sell and geographic expansion.
The transaction, which is expected to be USD 0.01 dilutive to PayPal full year adjusted earnings per share, is subject to the usual closing conditions, including regulatory approvals. The two companies will continue to operate independently until close.
