PayPal / Paidy 2021
PayPal acquired Paidy for $2.7B on September 8, 2021.
- Target
- Paidy
- Acquirer
- PayPal
- Deal value
- $2.7B
- Deal type
- Cash
- Announced
- September 8, 2021
- Sub-sector
- Lending
Transaction overview
- PayPal announced the acquisition of Paidy on September 8, 2021 for $2.7B.
- The transaction is structured as Cash.
- The deal closed on November 1, 2021.
Strategic rationale
PayPal pays cash for the leading Japanese buy-now-pay-later platform to localize and expand its consumer credit offering in Asia.
Deal terms & multiples
About PayPal NASDAQ: PYPL
PayPal is a digital payments platform that has operated for more than 20 years. The company serves more than 400 million consumers and merchants across more than 200 markets. PayPal provides financial services and commerce solutions designed to make payments more convenient, affordable, and secure.
- Ticker
- NASDAQ: PYPL
Advisors on the transaction
Public reporting named the following firms as advisors to the parties in the transaction.
- PayPal
- BofA Securities (financial adviser), White & Case (legal adviser). Paidy: Goldman Sachs (financial adviser), Cooley LLP and Mori Hamada & Matsumoto (legal advisers).
Frequently asked questions
What does Paidy do?
Paidy is Japan's leading buy now, pay later service that allows consumers to make online purchases and consolidate payments into monthly bills paid at convenience stores or via bank transfer. The platform uses proprietary technology to score creditworthiness and guarantee payment to merchants.
How large is Paidy's user base?
Paidy had more than six million registered users at the time of acquisition announcement.
Why did PayPal acquire Paidy?
The acquisition expands PayPal's capabilities and presence in Japan, the third largest ecommerce market globally, and complements PayPal's existing cross-border ecommerce business in the country.
When did the acquisition close?
PayPal completed the acquisition of Paidy on October 12, 2021.
Will Paidy continue operating independently?
Yes. Following the acquisition, Paidy continues to operate its existing business, maintain its brand, and support a wide variety of consumer wallets and marketplaces under founders Russell Cummer and Riku Sugie.
Sources
- newsroom.paypal-corp.com /2021-09-07-PayPal-to-Acquire-Paidy