PayPal surges 16% following Stripe’s and Advent’s $53 billion takeover proposal
PayPal shares experienced a significant increase following reports that Stripe and Advent proposed a $53 billion acquisition of the payments giant at a premium.
Payments giant PayPal experienced a notable increase in premarket trading on Wednesday following reports that financial technology company Stripe, along with private equity firm Advent International, had submitted a joint bid of $53 billion to acquire the company.
As reported by Reuters, referencing two individuals with knowledge of the situation, Stripe and Advent have proposed to acquire PayPal for $60.50 per share, which would value the payments company at over $53 billion.
The report indicated that the proposal was submitted earlier this month and encompasses around $50 billion in committed bank financing, reflecting a 28% premium to PayPal’s closing share price on Tuesday.
“Stripe and Advent are in discussions to acquire PayPal at a price of $60.50 per share.”
The sources further revealed that:
The offer was submitted earlier this month and encompasses approximately $50 billion in committed bank financing.
If finalized, the transaction would result in Stripe and Advent jointly owning PayPal, with both companies possessing equal ownership stakes.
As stated in the report, PayPal has yet to respond to the takeover proposal, while discussions between Stripe and Advent with the company are anticipated to proceed in the upcoming weeks.
After the announcement of the bid, PayPal shares surged approximately 16% in premarket trading on Wednesday. The company’s stock has dropped by about 18% over the past year, despite the rally.
