Online payments giant PayPal announced on Tuesday it has acquired global payout platform Hyperwallet for $400 million. The latest acquisition reportedly enhances PayPal’s capabilities, which will improve the company’s ability to provide an integrated suite of payment solutions to e-commerce platforms and marketplaces around the world. While sharing more details about the acquisition, Bill Ready, COO of PayPal, stated:
“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. 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.”
Brent Warrington, CEO of Hyperwallet, also commented:
“We are thrilled to be joining forces with a powerhouse like PayPal. 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.”
PayPal added that 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.