- Buy now, pay later service Zip Co is purchasing fellow company PartPay for a maximum of NZ$65.8 million
- The buy propels Zip’s global expansion, giving it a presence in New Zealand, the United Kingdom, the United States and South Africa
- Zip is also gaining an interest in New York based QuadPay and South African based Payflex, two companies of the same dynamic
- Zip’s share price is up 10.3 per cent today, currently sitting at $3.32 per share
Buy now, pay later service Zip Co is set to purchase PartPay, a company of the same dynamic, to establish its global presence.
Zip will pay NZ$50.8 million for PartPay. An additional NZ$15 million will be handed over on the basis of meeting milestones during the 2020 and 2021 financial years.
Zip will acquire full interest in PartPay, putting it in contact with markets in New Zealand, the United Kingdom, the United States and South Africa.
CEO and Managing Director of Zip Larry Diamond said; “this transaction marks the beginning of Zip’s global expansion story. Whilst we see significant upside in the core Australian business, we feel the timing is opportune to begin investing abroad as we seek to build a global payments business.”
The newly purchased business has an existing 110,000 customers, over 250,000 instalment plans and is used by more than 1000 retailers.
PartPay comes integrated with one of New Zealand’s largest retail groups, The Warehouse Group, which Zip intends to capitalise on. As well as the nations largest telco, Spark.
CEO of PartPay John O’Sullivan said; “we are looking forward to working closely with our New Zealand merchants and customers to continue to deliver innovative payment solutions.”
Zip will also gain control of a UK based subsidiary, which is fully operational with a local team.
Additionally, Zip has taken an equity interest of 8.9 per cent in QuadPay, a fellow buy now, pay later company, based in New York. Plus a 24.7 per cent holding in South African based Payflex.
PartPay earlier secured these holdings in exchange for its codebase.
For US$11.4 million, Zip intends to increase its holding in QuadPay to 15 per cent. This move will allow Zip to appoint a member to QuadPay’s Board.
Zip’s share price is up 10.3 per cent today, currently sitting at $3.32 per share at AEST 12:49pm