Afterpay is aiming to boost its European expansion efforts by acquiring PMT Technology SLU and the FinTech Pagantis from NBQ Corp. for a minimum of €50 million ($59 million). Afterpay is known for its buy now, pay later (BNPL) programs.
Pagantis, the umbrella company that includes PMT, offers payment services for eCommerce businesses in Spain, France and Italy.
In a press release, Afterpay said the deal would “expedite its expansion into Europe and capitalize on a market primed for ‘buy now, pay later’ (BNPL) services.” The company added that Southern Europe represents an important eCommerce market that “exceeds €150 billion ($177 billion) across Spain, Italy and France. With large millennial populations, a strong fashion and beauty market, and significant consumer debit card usage, there is a strong opportunity to offer BNPL services.”
The deal is subject to regulatory approval.
Afterpay plans to offer Pagantis’ products across Spain, France and Italy under its European brand, Clearpay. In a press release this summer, Afterpay, which entered the U.K. market last year, said that its Clearpay brand now has more than one million active users in the country. Afterpay also offers Clearpay in New Zealand, the U.S. and Australia, where the company is based.
“Our momentum to date has given us the confidence to expedite our expansion into new global regions,” said Anthony Eisen, co-founder and CEO of Afterpay. “Acquiring Pagantis provides us with the necessary regulatory licensing, resourcing and infrastructure to expedite the launch of Afterpay into key countries in Southern Europe and beyond.”
The companies said Pagantis Founder and CEO Rolf Cederström will stay on as head of the European team. Pagantis’ existing credit products will be discontinued.
The release said that under the deal’s terms, “NBQ will receive a minimum €50m, with €5m in cash payable at completion of the acquisition and a deferred consideration of a minimum of €45m, payable three years after completion of the agreement.”
Afterpay announced last week that it has partnered with beauty, fitness and casual fashion retailers Charlotte Tilbury, Fenty Skin, Fila, Huda Beauty, Puma and Vineyard Vines. Afterpay said it had also launched two new features that enable customers to view estimated spending limits and reschedule payments.