- Zip Co (ZIP) and Sezzle (SZL) mutually agree to scrap their proposed $491 million merger
- The parties say they made the call to terminate the deal in light of current macroeconomic and market conditions, according to Zip
- As part of the termination, Zip will pay Sezzle US$11 million (A$16.3 million) to cover costs that were associated with the transaction
- Shares in Sezzle are down 31.33 per cent to 28 cents at 11:24 am AEST, while Zip shares are up 5 per cent to 52 cents per share at the same time.
Buy now, pay later companies Zip Co (ZIP) and Sezzle (SZL) have mutually agreed to scrap their proposed $491 million merger.
The two companies made the call to terminate the deal in light of current macroeconomic and market conditions, according to Zip.
As part of the termination agreement, Zip will now pay Sezzle US$11 million (A$16.3 million) to cover costs that were associated with the transaction, including legal and accounting work.
“We believe that mutually terminating the merger agreement with Sezzle at this
time is in the best interests of Zip and its shareholders and will allow Zip to focus
on its strategy and core business in the current environment,” Zip Chair Diane Smith-Gander said.
Sezzle’s Co-Founder, CEO and Executive Chairman, Charlie Youakim, said the company had been excited by the potential of the transaction but would now focus on its strategy and execution.
“We remain dedicated to driving toward profitability and free cash flow and believe this is the best outcome for our shareholders,” Mr Youakim said.
Shares in Sezzle were down 31.33 per cent to 28 cents at 11:24 am AEST, while Zip shares were up 5 per cent to 52 cents per share at the same time.