Australia’s alternative credit firm Afterpay buys Spanish company to expand into Europe

With the implementation of secure payment systems, as well as the expected rise in the penetration and use of credit and debit cards, Myanmar’s consumer class will hit 19 million people by 2030. (iStockphoto via MBT)

Australia’s Afterpay Ltd on Monday said it would acquire Spain-based peer Pagantis to expand its operations into Europe, as it rides a boom in online shopping sparked by the COVID-19 pandemic.

Australia’s biggest buy-now-pay-later (BNPL) company said its unit had entered an agreement to buy Pagantis from NBQ Corporate SLU for a minimum consideration of 50 million euros ($58.99 million).

Acceleration of online transactions during the pandemic has bolstered the popularity of alternative credit firms like Afterpay, as a growing number of young consumers who may not have access to credit cards and loans sign up on its platform to shop.

The announcement sent the company’s share price up 5.1% to an all-time high of A$83.0 in early trade.

“Our momentum to date has given us the confidence to expedite our expansion into new global regions,” said chief executive Anthony Eisen.

“Acquiring Pagantis provides us with the necessary regulatory licencing, resourcing and infrastructure to expedite the launch of Afterpay into key countries in Southern Europe and beyond,” he said.

The company said it was working with Pagantis and engaging with retailers, aiming to launch in the third quarter of 2021.

Melbourne-based Afterpay became one of the country’s 20 most valuable companies last week after it doubled its annual core earnings forecast.

According to a regulatory filing last week, Japan’s largest lender by assets Mitsubishi UFJ Financial Group Inc had acquired about 5% of Afterpay, months after Chinese gaming and social media giant Tencent Holdings Ltd bought a 5% stake.

Afterpay is set to report its full-year results on Aug. 27.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.