Stripe and Advent Propose a Record-Breaking $53B Acquisition of PayPal
In a move that could potentially become the largest fintech acquisition in history, payments behemoth Stripe and private equity heavyweight Advent International have jointly proposed to acquire PayPal Holdings for $60.50 per share. This values the company at an impressive $53 billion. The offer, which represents a 28% premium over PayPal’s recent closing price, is supported by approximately $50 billion in committed bank financing.
The proposal, submitted earlier this month, suggests that Stripe and Advent will share equal ownership of PayPal, with no plans to dismantle the company. It is expected that PayPal’s board will convene as early as July 20 to formally discuss the offer. All three companies — PayPal, Stripe, and Advent — have refrained from making public comments.
Should the deal go through, it would signify a rare milestone: a venture-backed company acquiring an S&P 500 member. Stripe, which is privately valued at approximately $159 billion, would gain access to PayPal’s extensive consumer base and the popular Venmo platform. This would be a novel territory for Stripe. Following the news, PayPal shares experienced a surge of more than 16% in premarket trading. Analysts perceive the deal as a significant consolidation move in the fiercely competitive digital payments landscape.
Source: CNBC – Stripe, Advent propose $53 billion takeover offer for PayPal