PayPal puts up $2.2B for iZettle ahead of planned IPO
May 18, 2018
PayPal has reportedly agreed to buy iZettle for $2.2 billion in cash, a development that comes a little more than a week after the Swedish payments startup announced its intent to go public on the NASDAQ in Stockholm. That offering was set to raise some $227 million and value the business at about $1.1 billion, according to TechCrunch.
Founded in 2010, iZettle has raised more than $300 million in VC funding from backers including Greylock Partners, Index Ventures and Creandum, reaching a reported valuation of roughly $950 million with a $47 million round in December. The company is a developer of mobile payments services and related software for small businesses, putting it in competition with companies like Square and—until now, at least—PayPal.
The takeover of iZettle is set to be the largest in PayPal's history, according to the PitchBook Platform, topping the 2015 acquisition of remittance company Xoom at an enterprise value of $890 million.