PriceSensitive

Zip Co (ASX:Z1P) completes QuadPay acquisition

Finance
ASX:Z1P
01 September 2020 11:00 (AEST)
Zip CO (ASx:Z1P) - CEO, Larry Diamond (front))

Source: Retailbiz

Zip Co (Z1P) has completed the purchase of QuadPay, a leading high growth buy now, pay later (BNPL) player in the United States.

Quadpay allows customers to pay in four interest-free instalments over six weeks, online and instore.

In early June, Zip announced it would purchase the New York-based company in a script deal worth $403 million.

In August, the company reported a record month for QuadPay as it delivered monthly transaction volume in excess of US$70 million (approximately A$97 million) — a 30 per cent increase on the June average and a 600 per cent on July 2019 figures.

CEO and co-founder, Larry Diamond, is pleased to welcome QuadPay to the Zip family.

“The U.S. is a critical part of our global strategy as merchants increasingly demand global payment solutions,” he said.

“QuadPauy business has continued to deliver strong results, driven by the flight to online and a move away from the outdated and unfair credit card,” he added.

Additionally, the company also completed the issuance of $100 million in convertible notes and up to $100 million of warrants to CVI Investments to drive global growth.

CVI Investments is part of the U.S. based Susquehanna International Group.

“We are also delighted to welcome Susquehanna Investments Group onto the register and thank them for their support as we turbocharger our growth into new products and geographies,” Larry told the market today.

Zip is down 6.55 per cent on the market today and is trading for $8.56 per share at 10:42 am AEST.

Related News