Stripe and Advent International have reportedly made a joint offer to acquire PayPal Holdings Inc. for more than $53 billion, proposing a price of $60.50 per share. This bid comes with approximately $50 billion in committed financing from banks and represents a 28% premium over PayPal’s recent closing share price.
The companies aim for equal ownership of PayPal, but the deal’s finalization is uncertain as PayPal has not yet responded. This potential acquisition comes as PayPal faces increased competition and slowing growth.
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In a significant development for the digital payments landscape, financial technology giant Stripe and private equity firm Advent International have reportedly joined forces to acquire PayPal Holdings Inc. The joint offer, submitted earlier this month, values PayPal at over $53 billion, with a proposed price of $60.50 per share. This offer represents a substantial premium of approximately 28% above PayPal's closing share price on Tuesday.
Sources familiar with the matter revealed that the acquisition bid is supported by a formidable $50 billion in committed financing from various banks. This move by Stripe and Advent follows an initial, less formal approach made in early April. While Advent International has declined to comment, neither PayPal nor Stripe immediately responded to requests for comment from Reuters. The sources, who requested anonymity due to the confidential nature of the discussions, indicated that Stripe and Advent are aiming to propel these discussions forward in the coming weeks, as PayPal has yet to formally respond.
Under the terms of the proposed deal, Stripe and Advent would co-own PayPal, sharing an equal stake in the company, rather than pursuing a breakup of its operations. However, it is important to note that there is no guarantee that this proposal will culminate in a definitive transaction.
