California-based fintech giant PayPal has announced that it has agreed to acquire Swedish payments startup iZettle in an all cash deal valued at $2.2bn.
The move will significantly expand PayPal’s brick and mortar presence, with iZettle specializing in providing small businesses with digital payment products such as card readers that can be powered by smartphones of tablets.
The Swedish company has grown its revenues at a compound annual growth rate of 60% between 2015 and 2017, forecasting that it will generate $165mn in revenue this year, with approximately $6bn in payments to be processed on the platform.
“Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile,” said PayPal President and CEO Dan Schulman.
“iZettle and PayPal are a strategic fit, with a shared mission, values and culture—and complementary product offerings and geographies.”
iZettle operates in 12 markets including Brazil, Finland, France, Germany and Italy – countries that PayPal does not currently have a significant physical retail presence in.
If successful, the deal will be the biggest acquisition in PayPal’s history.