Afterpay Enters Landmark Deal with Block Inc. and Secures Partnership with Target
Block Inc.
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Afterpay Enters Landmark Deal with Block Inc. and Secures Partnership with Target

Australian fintech company Afterpay, known for its popular buy now, pay later service, has made waves in the financial world with its recent announcement of a scheme implementation deed with NYSE-listed Block, Inc. (formerly Square, Inc. ). Block, a US-based digital payments company founded by Twitter CEO Jack Dorsey, is set to acquire all issued shares in Afterpay, making it the largest successful public M&A deal in Australia's history and the largest cross-border fintech deal globally.

The scheme implementation deed, executed on 2 August 2021, culminated in the completion of the transaction on 1 February 2022. The acquisition valued Afterpay at approximately US$29 billion, solidifying its position as a market leader in the buy now, pay later space.

An integral part of this transformative deal is a strategic partnership between Afterpay and Target, one of the largest retail giants in the United States.

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Under this agreement, Target will offer Afterpay's services to its online customers, joining a roster of esteemed retailers that includes Walmart, Ulta Beauty, and Gap. This partnership propels Afterpay's expansion in the US market, where it faces competition from other buy now, pay later providers like Klarna, Affirm, and PayPal.

The positive impact of the Target partnership was immediately reflected in Afterpay's share price. Following the announcement, Afterpay shares surged by 11% on Friday, 4 February 2022. The closing price of A$160. 50 marked a significant increase from the previous day's closing price of A$144. 50. The optimistic market sentiment was further reinforced by the completion of the Block acquisition, which granted Afterpay shareholders access to Block's global network and innovative product offerings.

Afterpay's alliance with Block and partnership with Target set the stage for continued growth and innovation. With a strengthened position in the US market and access to Block's resources, Afterpay aims to further revolutionise the way consumers pay for their purchases and enhance its presence in the global financial landscape.

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