Australia's Zip to acquire two buy-now-pay-later firms for A$160m

[BENGALURU] Australia's Zip Co said on Monday it would acquire two buy-now-pay-later (BNPL) companies operating in Europe and the Middle East for a combined consideration of about A$160 million (S$164.7 million).

Zip will buy all the shares it does not already own in Europe-focused Twisto for about A$140 million, the company said, adding that the purchase would complement its presence in the United Kingdom.

The company also said it would acquire all the shares it does not hold in Spotii for A$21 million. Spotii is operational in the United Arab Emirates and Saudi Arabia, and Zip expects the acquisition to occur in the third quarter of 2021.

After reporting record quarterly earnings last month, Zip had said it would raise A$400 million through senior unsecured convertible notes to fund its expansion plans.

The company has been steadily beefing up its international footprint, picking up a strategic stake in the Philippines-based firm TendoPay and making a soft launch in Canada during the last quarter.

REUTERS