Afterpay has announced the signing of an agreement with NBQ Corporate for the acquisition of Pagantis and PMT Technology. With this acquisition, Afterpay accelerates its expansion in Europe and capitalizes on the opportunities of a mature market for Paga+Tarde services. Afterpay will offer the Paga+Tarde products of Pagantis under its brand in Europe, clear pay.
This operator in the United States and Australia is thus preparing its arrival on the European market, to the great interest of both large and small retailers, who are showing a growing demand for buy-now-pay-later services.
Bet on southern Europe
Pagantis currently offers a range of traditional and buy now and pay credit services in Spain, and Italy, with regulatory approval to also operate in Portugal and a pending application to pass its payment institution license to Germany.
Today, southern Europe is a potential e-commerce market that exceeds 150,000 million euros in the whole of Spain, Italy and France. With large numbers of millennials, a strong fashion and beauty sector, and significant use of personal debit cards, these markets represent a great opportunity for Paga+Tarde services.
The acquisition will also enable the company to serve demand for Afterpay’s Paga+Tarde services from existing global retail customers for all of its e-commerce sites.
A win-win deal for both parties
«Our drive has given us the confidence to accelerate our expansion into new regions. Our entry into markets such as the United States and the United Kingdom, of such international relevance, and our growth, which exceeds the pace we had experienced in the more mature Australian market, confirm the attractiveness of our product on a global scale.», says Anthony Eisen, co-founder and CEO of Afterpay. «The acquisition of Pagantis provides us with the necessary regulatory licences, infrastructure and resources to accelerate the launch of Afterpay in key countries in Southern Europe and beyond».
As part of the agreement, NBQ will receive a minimum of 50 million euros, with €5 million in cash payable upon execution of the acquisition and a deferred contribution of a minimum of €45 million, payable three years after the execution of the acquisition. This deferred contribution may exceed €45 million if Pagantis’s equity value exceeds €45 million after three years.
Afterpay has protections against losses arising from the operation of the Pagantis under the Agreement, and NBQ indemnifies Afterpay for various material loss situations that may arise from the Pagantis Legacy Business.
Pagantis founder and CEO Rolf Cederström will continue to lead the new European team. For now, Clearpay will simply rebrand Pagantis credit products with its own brand, but once it gets regulatory approval, Clearpay will begin offering its own products in the new markets.
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