Stripe and private equity firm Advent International have submitted a joint proposal to acquire PayPal in a deal valued at more than $53 billion, according to Reuters.
The proposal, submitted earlier this month, offers $60.50 per share and is backed by approximately $50 billion in committed financing from a consortium of banks. Discussions remain ongoing, and there is no certainty the proposal will result in a transaction.
Proposed Deal Would Expand Payments Ecosystem
If completed, the acquisition would combine Stripe’s merchant-focused payments infrastructure with PayPal’s consumer payments platform, which includes more than 430 million customer accounts and the Venmo digital wallet.
The combined businesses would process an estimated $3.7 trillion in annual payment volume, creating one of the world’s largest online payments platforms.
The proposal comes as PayPal continues efforts to improve growth following increased competition across digital payments. During the pandemic, the company’s market capitalization approached $360 billion, but its valuation has since declined amid slowing e-commerce growth and rising competition from payment providers and digital wallets.
Talks Remain Ongoing
Reuters reported that Stripe and Advent first approached PayPal in April before submitting the latest proposal earlier this month. Under the reported structure, Stripe and Advent would each hold an equal ownership stake in PayPal rather than splitting up the business. PayPal, Stripe and Advent have declined to comment publicly on the discussions.
If completed, the transaction would rank among the largest fintech acquisitions to date and further accelerate consolidation in the global digital payments industry.