PayPal Significantly Enhances Global Payout Capabilities With Acquisition of Hyperwallet
SAN JOSE, Calif.--(BUSINESS WIRE)--
PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it has agreed
to acquire Hyperwallet, a leading global payout platform, for $400
million in cash, subject to certain adjustments. The acquisition of
Hyperwallet enhances PayPal's payout capabilities, improving the
company's ability to provide an integrated suite of payment solutions to
ecommerce platforms and marketplaces around the world. According to
Internet Retailer, marketplace sales accounted for more than 50% of
global online retail sales in 2017.
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PayPal Significantly Enhances Global Payout Capabilities with Acquisition of Hyperwallet (Graphic: Business Wire)
"Ecommerce platforms and marketplaces are leveling the retail playing
field by connecting buyers who have specific needs with groups of
sellers that can meet them," said Bill Ready, chief operating officer,
PayPal. "Merchants and service providers who use these platforms want
quick, efficient, flexible and secure access to their earnings, whenever
and wherever they need them. By acquiring Hyperwallet, we
will strengthen our ability to provide an integrated end-to-end solution
to help ecommerce platforms and marketplaces — however large or small —
leverage world-class payout capabilities in over 200 markets."
Upon closing, PayPal and Braintree merchants will gain localized,
multi-currency payment distribution capabilities in more than 200
markets with numerous disbursement options, including prepaid card, bank
account, debit card, cash pickup, check and PayPal.
"We are thrilled to be joining forces with a powerhouse like PayPal,"
said Brent Warrington, CEO, Hyperwallet. "Combining Hyperwallet's
advanced payout capabilities with PayPal's scale will bring increased
value to both Hyperwallet's and PayPal's customers. This is an
outstanding opportunity to supercharge Hyperwallet's growth and further
our mission to pay the planet."
The transaction is expected to close in the fourth quarter of 2018. The
completion of this transaction is subject to customary closing
conditions, including regulatory approvals.
Perella Weinberg Partners LP is acting as sole financial adviser to
PayPal, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as its
legal adviser with regard to the transaction. Raymond James &
Associates, Inc. is acting as sole financial adviser to Hyperwallet,
while Goodwin Procter LLP is acting as its legal adviser.
Fueled by a fundamental belief that having access to financial services
creates opportunity, PayPal Holdings, Inc. (NASDAQ: PYPL) is committed
to democratizing financial services and empowering people and businesses
to join and thrive in the global economy. Our open digital payments
platform gives PayPal's 237 million active account holders the
confidence to connect and transact in new and powerful ways, whether
they are online, on a mobile device, in an app, or in person. Through a
combination of technological innovation and strategic partnerships,
PayPal creates better ways to manage and move money, and offers choice
and flexibility when sending payments, paying or getting paid. Available
in more than 200 markets around the world, the PayPal platform,
including Braintree, Venmo and Xoom, enables consumers and merchants to
receive money in more than 100 currencies, withdraw funds in 56
currencies and hold balances in their PayPal accounts in 25 currencies.
For more information on PayPal, visit www.paypal.com/about
or follow us at @PayPalNews.
For PayPal Holdings, Inc. financial information, visit investor.paypal-corp.com.
Hyperwallet's global payout platform provides growing organizations with
a fast, efficient, and transparent way to distribute funds to payees
almost anywhere in the world. Trusted by enterprise, ecommerce, and
on-demand platforms, Hyperwallet makes it easy to deliver a superior
payment experience through a single integration. Put your payees in
control with a range of convenient payment methods, enhanced financial
management tools, integrated payment tracking, and user-friendly
compliance and identity verification. Hyperwallet has offices in San
Francisco, Austin, London, Sydney, and Vancouver. You can learn more at hyperwallet.com.
This announcement contains "forward-looking" statements within the
meaning of applicable securities laws. Forward-looking statements and
information relate to future events and future performance and reflect
PayPal's expectations regarding the impact of this transaction on
PayPal's and Hyperwallet's financial and operating results and business,
the operation and management of Hyperwallet after the acquisition, and
the timing of the closing of the acquisition. Forward-looking statements
may be identified by words such as "seek", "believe", "plan",
"estimate", "anticipate", expect", "intend", and statements that an
event or result "may", "will", "should", "could", or "might" occur or be
achieved and any other similar expressions.
Forward-looking statements involve risks and uncertainties which may
cause actual results to differ materially from the statements made, and,
accordingly, readers should not place undue reliance on forward-looking
statements and information. Factors that could cause or contribute to
such differences include, but are not limited to, the timing and
possible outcome of security holder and regulatory approvals in
connection with the transaction, the possibility that the transaction
may not close, the reaction to the transaction of Hyperwallet customers
and business partners, the reaction of competitors to the transaction,
the retention of Hyperwallet's employees, PayPal's plans for
Hyperwallet, economic and political conditions in the global markets in
which PayPal and Hyperwallet operate, the future growth of PayPal's and
Hyperwallet's businesses and the possibility that integration following
the transaction may be more difficult than expected. More information
about these and other factors can be found in PayPal Holdings, Inc.'s
most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and other filings with the Securities and
Exchange Commission (the "SEC"), and its future filings with the SEC.
The forward-looking statements contained in this press release speak
only as of the date hereof. PayPal expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180619006210/en/
For PayPal Holdings, Inc.
Source: PayPal Holdings, Inc.
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