It’s a path that its bigger rival Afterpay knows well. It has a blue sky-type growth story to ensure the notes can be issued at a substantial premium, and the volatility required to keep hedge funds interested and the convertible notes liquid. The buy now, pay later outfit is the perfect candidate for a convertible notes deal.
#ZIP SHARE PRICE TODAY ZIP#
Street Talk understands that’s because Zip wants to take advantage of the heat in its share price and is tapping capital markets with a $300 million-plus convertible note raising. The buy now, pay later group’s stock soared on Tuesday thanks to better than expected transaction volume and customer growth in the March quarter, and the heavy buying spilled over into Wednesday morning, until its shares went into a trading pause in the early afternoon. Zip Co co-founder Peter Gray said his company’s March quarter results were “super pleasing”. Year-to-date Zip is up 29%.Zip Co is making the most of its flying share price with a $300 million-plus convertible notes offering. While the Zip share price has traded up since Monday’s open, there was nothing close to ‘frantic’ buying action in response to the announced acquisitions. The acquisition is expected to be finalised by the third quarter of this calendar year. Zip said it would purchase the remaining shares in Spotii for $21 million, implying a total enterprise value of $26 million. 'Joining forces with Zip – a global leader in the BNPL space – will enable us to drive further growth by tapping into the company's advanced technology and expertise.' Like the Twisto play, management said Spotii will help Zip gain exposure to the Middle Eastern market, which the company says is one of the fastest growing e-commerce regions globally.Ĭommenting on the acquisition, Spotii's co-founder, Anuscha Ahmed said: The company said it would purchase the remaining Twisto shares for $140 million, with the acquisition expected to be finalised within the fourth quarter of this calendar year. 'We're excited to join the global Zip team to take advantage of the significant European opportunity and to continue to develop innovative BNPL solutions.'
To note, Zip already had significant shareholdings in both of these companies prior to yesterday’s announcement, rather the release highlights the company’s intention to acquire the remaining shares in these companies. ‘Zip is building its playbook in successfully identifying, completing and integrating strategic acquisitions.'įramed against these broader ambitions, the push into Europe through the Twisto acquisition and the push into the Middle East via the Spotii acquisition should come as little surprise to investors and the market more broadly.
Since then Quadpay has grown from strength to strength, consistently reporting double and triple-digit growth across a number of key metrics.įor instance, in the third quarter Zip reported that Quadpay transaction volumes rose 234% to $762.0 million, while revenues increased 188% to $54.4 million. In recent times, Zip has proven to be a highly acquisitive company with wide-reaching global ambitions, last year acquiring the US-based BNPL Quadpay.
Popular buy now pay later company Zip (ticker: Z1P) on Monday announced two strategic acquisitions, one in Europe (EU) and the other in the Middle East (UAE).
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