American payment company Square, headed by Twitter founder Jack Dorsey, and Australian online lending firm Afterpay have agreed on an USD 29bn acquisition deal for all of the issued shares in Afterpay.

Square plans to close the deal in the first quarter of 2022, Forbes Russia reports citing the companies’ press release.

“Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles. Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands,” said Jack Dorsey.

Square has agreed the acquisition of all shares, so Afterpay shareholders will receive a fixed exchange ratio of 0.375 shares of Square common stock for each Afterpay ordinary share. Square will also establish a secondary listing on the Australian Securities Exchange (ASX).

CNBC reports that Afterpay’s stock is up by over 23% after the deal announcement, and Bloombers writes that it could be the biggest deal in the history of Australia.

Square targets consumers that stay clear of traditional credit, especially among younger audience. The San Francisco-based company already offers installment credits, which it considers “a powerful tool for growth” for the main businesses of partner merchants.

Afterpay allows customers to pay in four interest-free installments for an item and only pay commission fee if they miss the automatic payment.

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