PayPal is paying $2.2 billion to buy iZettle

PayPal is paying $2.2 billion to buy iZettle, snapping up the Swedish payments start-up just before it was set to become the biggest fintech in Europe to list. The US payments group is paying double the amount that iZettle, which is focused on Europe and Latin America, was targeting in its IPO, which was due to take place at the end of this month. iZettle would become only the latest star of the Swedish tech scene to be bought up by a bigger US rival after both Skype and Mojang were bought by Microsoft before being able to list. The deal is likely to fuel anxiety over how few of the prospects in European technology resist the urge to sell out and instead try to develop into big companies to rival their US competitors… iZettle first shot to attention for its portable credit card readers used by everyone from coffee shops to homeless magazine sellers and has since broadened out to appeal to small businesses and their ecommerce operations… iZettle, whose owners include Mastercard, American Express and Santander, as well as venture capital firms such as Index Ventures and Dawn Capital, was hoping for a valuation of about $1.1 billion in its listing… The deal is PayPal’s third sizeable acquisition in five years after it bought Braintree and its Venmo mobile moneytransfer platform for $800 million in 2013 and Xoom, the international money transfer service, for $890 million in 2015.
Richard Milne and Martin Arnold