Valued at $3.9 billion, Zip says the move is intended to establish a presence for the company in the large European market and emerging Middle Eastern Market. The Middle East is one of the fastest growing global eCommerce regions.
According to Zip, it is yet to be determined whether it pays for the outstanding stake in each company in the form of shares, cash or a combination. Acquisition of Twisto is expected to be completed in the fourth quarter of the year, while the takeover of Spotti will occur in the third quarter.
Last year, Zip announced the acquisition of New York based buy now pay later service provider, Quadpay, for $403 million. Since that deal, Quadpay has increased annual transactions by over 200 per cent.
“Zip has adopted a similar approach to Quadpay, which proved to be highly successful. By initially making low-risk minority investments, Zip is well placed to validate cultural fit and management alignment, stress test the business plan and identify synergies, and plan for integration,” the company said in a statement.
According to Zip, there is increased demand from merchants for a single global buy now pay later solution. Both Twisto and Spotti will be integrated into Zip’s global Single Merchant Interface (SMI) which provides merchants instant access to 11 countries across five continents.
In Australia and New Zealand, Zip boasts over two million customers. Every transaction made with Zip Pay is interest free. In addition, Zip Business offers business loans to help fund small business growth.
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SOURCE Zip Co