Affirm looks to Canada with acquisition of buy-now-pay-later firm PayBright
(Recasts with background on industry, details)
Dec 3 (Reuters) - Affirm Holdings Inc has agreed to
buy Canadian buy-now-pay-later (BNPL) firm PayBright for C$340
million ($264 million), as the lending startup looks to expand
outside the United States.
The deal marks the first major sign of consolidation in the
BNPL industry, which is riding on an online shopping boom
accelerated by the COVID-19 pandemic and is now seeing
The move comes about two weeks after Affirm, founded by
PayPal Holdings' co-founder Max Levichin, disclosed an
initial public offering that showed revenue for the three months
ended Sept. 30 nearly doubled, while its net loss narrowed.
Unlike Affirm, PayBright is a more traditional BNPL company,
which lets customers pay for anything from shoes to furniture in
interest-free installments, typically over four bi-weekly
Through the deal, Affirm could expand its merchant network
with PayBright's more than 7,000 retailers, which include Steve
Madden and Samsung. Affirm's IPO filing showed that close to a
third of its revenue in the September quarter came from just one
The cash and stock deal is expected to close in the first
quarter of 2021, Affirm said, adding that additional terms of
the deal would not be disclosed.
Affirm, whose major investors include Peter Thiel's venture
firm Founders Fund and Singapore's sovereign wealth fund GIC,
will be competing with Australia's Afterpay, the
largest-listed BNPL firm, and Minneapolis-based Sezzle.
($1 = 1.2861 Canadian dollars)
(Reporting by Nikhil Kurian Nainan, Sohini Podder and Noor
Zainab Hussain in Bengaluru; Editing by Amy Caren Daniel)
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