Afterpay (ASX:APT), the leader in “Buy Now, Pay Later” payments, today announced that it has entered into an agreement with NBQ Corporate SLU (NBQ) to acquire Pagantis SAU and PMT Technology SLU. Pagantis is a European company that offers payment services for ecommerce merchants across Spain, France, and Italy.
With this acquisition, Afterpay is able to expedite its expansion into Europe and capitalize on a market primed for “Buy Now, Pay Later” (BNPL) services. Today, Southern Europe has an addressable ecommerce market which exceeds €150b (US$177b) across Spain, Italy and France. With large millennial populations, a strong fashion and beauty market, and significant consumer debit card usage, there is a strong opportunity to offer BNPL services. The acquisition also allows the company to meet demand from existing global retail customers for Afterpay’s BNPL service across their European ecommerce sites.
“Our momentum to date has given us the confidence to expedite our expansion into new global regions. Entering into such internationally relevant markets like the U.S. and the UK and seeing our growth outpace what we experienced in our more mature Australian market, validates the appeal of our product on a global scale,” said Anthony Eisen, Co-founder and CEO of Afterpay. “Acquiring Pagantis provides us with the necessary regulatory licensing, resourcing and infrastructure to expedite the launch of Afterpay into key countries in Southern Europe and beyond.”
As part of the agreement, NBQ will receive a minimum €50m, with €5m in cash payable at completion of the acquisition and a deferred consideration of a minimum of €45m, payable three years after completion of the agreement. Deferred consideration can exceed €45m, provided the equity value of Pagantis exceeds €45m after three years.
Afterpay will offer Pagantis’ BNPL products under its European brand, Clearpay. Pagantis founder and CEO, Rolf Cederström, will continue leading the new European team. Pagantis’ existing credit products will be discontinued.
Once Clearpay receives the necessary regulatory approval it will be able to offer its products across Spain, France or Italy.
Afterpay is currently available in Australia, New Zealand, the United States and the United Kingdom, where it is known as Clearpay. As at June 30, 2020, Afterpay is offered by more than 55,400 of the world’s favorite retailers and is used by more than 9.9 million active customers globally.
