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- Discover Financial Services has agreed to invest US$30 million (A$40.22 million) in buy now pay later group Sezzle (SZL)
- Under the agreement, Discover will purchase over 4.5 million shares in Sezzle at US$6.58 (A$8.83) per share
- In addition to the investment, the parties have also proposed to enter into an expanded partnership
- This includes plans for a buy now, pay later network solution on the Discover Global Network and a dedicated referral program to introduce Discover credit and debit products to Sezzle’s consumer base
- On the market this afternoon, Sezzle is up 3.02 per cent and trading at $8.20 per share at 12:44 pm AEST
Discover Financial Services has agreed to invest US$30 million (A$40.22 million) in Sezzle (SZL).
Sezzle signed an agreement with Discover’s subsidiary, DFS Services.
Discover is a digital banking and payment services company based in the US.
Under the agreement, Discover will purchase over 4.5 million shares for US$6.58 (A$8.83) per share.
The shares will be issued using the company’s existing placement capacity, and will therefore not need shareholder approval.
In addition to the investment, the parties have also proposed to enter an expanded partnership. This includes plans for a buy now, pay later network solution on the Discover Global Network and a dedicated referral program introducing Discover credit and debit products to Sezzle’s consumer base.
Sezzle’s Executive Chairman and CEO Charlie Youakim was pleased with the partnership.
“We are excited about our relationship with Discover, as we believe our mission, vision, and values align,” he said.
“Discover’s capabilities via their network and financial products will enhance our own offerings and provide more paths to financially empower our consumers.”
On the market this afternoon, Sezzle was up 3.02 per cent and trading at $8.20 per share at 12:44 pm AEST.
