It was confirmed on Monday that Square and the 2015-founded buy now, pay later service have entered into a scheme implementation deed that will see Square acquire all of the issued shares in Afterpay. 

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The “acquisition aims to enable the companies to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes”.

“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,” Mr Dorsey said.

“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.”

Afterpay co-founders and co-chief executives, Anthony Elsen and Nick Molnar, added that the move will accelerate the company’s growth in the US and globally and offer more services for its customers.

“We are fully aligned with Square’s purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers,” they said.

“The transaction marks an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world.

“It also provides our shareholders with the opportunity to be a part of future growth of an innovative company aligned with our vision.”

The transaction is expected to close in the first quarter of 2022.