Zip CO (ASX:Z1P) - CEO, Larry Diamond
CEO, Larry Diamond
Source: Zip Co
The Market Online - At The Bell

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  • Zip Co (Z1P) completes its $116 million buyout of Czechia-based fintech business Twisto Payments
  • The deal gives Zip access to all 27 member states of the European Union (EU) through Twisto’s existing European Payment Institution licence
  • Zip says it has issued roughly 17.45 million shares to Twisto securityholders at $6.61 each to complete the acquisition, effectively valuing Twisto at $115.8 million
  • According to Zip, Twisto has served nearly one million customers across 22,000 merchants since it was founded back in 2013
  • Shares in Zip Co were up 4.04 per cent and trading at $5.94 at 11:07 am AEDT

Buy now, pater later (BNPL) player Zip Co (Z1P) has completed its $116 million buyout of Czechia-based fintech business Twisto Payments.

The deal gives Zip access to all 27 member states of the European Union (EU) through Twisto’s existing European Payment Institution licence.

Zip initially took an equity position in Twisto in late 2020 and announced its plans to take over the European business completely in May this year.

Today, Zip said it had issued roughly 17.45 million shares to Twisto securityholders at $6.61 each to complete the acquisition, effectively valuing Twisto at $115.8 million.

More dilution will be on the way for Zip shareholders over the next few years, with Zip to issue another 4.55 million new shares to the Twisto vendors as “holdback consideration shares” in no later than four years’ time.

According to Zip, Twisto has served nearly one million customers across 22,000 merchants since it was founded back in 2013 to become a leading BNPL platform in Central Europe.

Some of Twisto’s flagship merchants include the likes of KFC, Pizza Hut, Gap, and Under Armour.

Zip co-founder and CEO Larry Diamond said back in May Twisto and Zip had a “shared vision and deep cultural alignment”.

“We have been impressed by the Twisto team, their deep customer focus and product set and look forward to working closely with them to deliver on the opportunities we jointly have in front of us,” Mr Diamond said at the time.

Shares in Zip Co were up 4.04 per cent and trading at $5.94 at 11:07 am AEDT. The company has a $3.4 billion market cap.

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