Bulletin: PayPal Holdings Inc. Ratings Unaffected By Announced Acquisition Of iZettle

NEW YORK (S&P Global Ratings) May 22, 2018--S&P Global Ratings said today its ratings on PayPal Holdings Inc. (BBB+/Stable/A-2) are unaffected by the announced acquisition of iZettle. PayPal announced on May 17, 2018, the acquisition of iZettle, which sells mobile card readers and other payment solutions particularly to small and midsize businesses, for $2.2 billion. Although PayPal does not expect iZettle to contribute positively to EBITDA before 2020, the transaction will strengthen PayPal's footprint in the in-store payment segment, as well as in several countries (in Latin America and Europe). In our view, this will complement PayPal's current strong offering in the e-commerce and the peer-to-peer digital segments. We believe the acquisition reflects the competition between a range of payment

...NEW YORK (S&P Global Ratings) May 22, 2018--S&P Global Ratings said today its ratings on PayPal Holdings Inc. (###+/Stable/A-2) are unaffected by the announced acquisition of iZettle. PayPal announced on May 17, 2018, the acquisition of iZettle, which sells mobile card readers and other payment solutions particularly to small and midsize businesses, for $2.2 billion. Although PayPal does not expect iZettle to contribute positively to EBITDA before 2020, the transaction will strengthen PayPal's footprint in the in-store payment segment, as well as in several countries (in Latin America and Europe). In our view, this will complement PayPal's current strong offering in the e-commerce and the peer-to-peer digital segments. We believe the acquisition reflects the competition between a range of payment solution providers to capture a greater share of the growing global electronic payments space. The ratings are unaffected because the company has currently very low net debt. It had drawn $3 billion...

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