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PayPal Holdings received an acquisition offer from Stripe and private equity firm Advent International at $60.5/share, valuing the company at more than $53bn, according to sources. The offer is backed by roughly $50bn in committed bank financing and represents about a 28% premium to PayPal’s closing share price on Tuesday. Stripe and Advent have not yet received a response from PayPal as they seek to advance discussions in the coming weeks. Under the plan, Stripe and Advent would jointly own PayPal with equal stakes rather than break up the company. Combining Stripe and PayPal would create one of the world’s largest online payments companies, pairing Stripe’s merchant-focused business with PayPal’s more than 430mn consumer accounts. Analysts suggested the offer could be a low-ball opening bid, noting that Stripe and Advent could go as high as $70/share. PayPal has struggled with slowing growth and competition from Apple Pay and Google Pay.
PayPal’s dollar bonds rallied across the curve. Its longer dated 5.05% 2052s jumped by 2.8 points to 86.5, yielding 6.1%
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