Pagantis currently provides a range of BNPL and traditional credit services across Spain, France and Italy, with regulatory approval to also operate in Portugal. The acquisition gives Afterpay “an immediate regulatory right to operate across all EU member states” (subject to approval).
“Our momentum to date has given us the confidence to expedite our expansion into new global regions,” said CEO Anthony Eisen.
“Entering into such internationally relevant markets like the US and the UK and seeing our growth outpace what we experienced in our more mature Australian market, validates the appeal of our product on a global scale.”
The BNPL sector “remains nascent or non-existent” in many EU countries, giving Afterpay the ability to capitalise on early mover advantage, and continues the company’s preferred model of partnering with a local market presence to de-risk its global expansion.
“The new markets we will be entering provide our global retailers with the opportunity to offer Afterpay in more regions and for us to provide a whole new customer base with access to our differentiated and [customer-centric] model,” Mr Eisen said.
As part of the agreement to acquire Pagantis from NBQ Corporate, NBQ will receive €50 million in consideration, payable as €5 million in cash payable at completion and deferred consideration of €45 million.