Payment processing giant Stripe has partnered with private equity firm Advent International to propose a $53 billion acquisition of PayPal. The joint offer, submitted earlier this month, seeks to combine two of the most recognizable brands in financial technology into a single, unified powerhouse.
The prospective buyers are offering $60.50 per share, which is a 28% premium over the recent closing price of PayPal. The proposal clearly shows a structure where Stripe and Advent would take equal ownership stakes, without breaking PayPal’s existing operations apart.
Meanwhile, PayPal’s new CEO, Enrique Lores, recently reorganized the company into three distinct operating units and announced plans to use artificial intelligence to trim $1.5 billion in operational costs. Despite its battered stock price, PayPal is still moving incredible amounts of money, with it $8.35 billion in first-quarter revenue and processing $464 billion in total payments.
Because negotiations are still taking place behind closed doors, official representatives from PayPal, Stripe, and Advent have all declined to comment publicly on the offer.
