Stripe and Advent International Plan to Acquire PayPal

Fintech company Stripe and private investment firm Advent International have submitted a joint offer to acquire PayPal. According to Reuters, the deal values the payments giant at more than $53 billion.

Under the proposal, Stripe and Advent plan to pay $60.50 per PayPal share, which is 28% higher than the company's last closing price.

Following the news, PayPal's shares rose more than 20% in U.S. pre-market trading.

According to Reuters, the offer was made in early July of the current year and is backed by approximately $50 billion in banking financing. Previously, in April, the parties had also submitted PayPal with an initial proposal, though the company has not yet provided an official response to either offer.

In the event of the proposed transaction, Stripe and Advent International would own PayPal in equal shares. According to available information, the parties are aiming to complete the deal by the end of the current month.

According to analysts' assessments, the potential merger would be primarily focused on PayPal's consumer services, including Venmo, Link, and Button. Additionally, the Braintree platform could be of significant value to Stripe, as it would add additional scale to the company's corporate payments business, despite the fact that its growth has slowed in recent years.