Stripe and Advent bid $53B for PayPal

Stripe and private equity firm Advent International have made a joint offer to acquire PayPal for approximately $53 billion, or $60.50 per share, representing a 28% premium over PayPal's closing price on July 14. The offer, submitted in early July, is backed by about $50 billion in committed bank financing. Stripe and Advent first approached PayPal in early April but have not yet received a response. Under the proposal, Stripe and Advent would jointly own PayPal with equal stakes. The combination would create the world's largest merchant acquirer, processing about $3.7 trillion in annual payment volume. PayPal's new CEO Enrique Lores, appointed in March, has launched a turnaround plan including a reorganization into three divisions. Analysts view the offer as potentially a low-ball opening bid, with speculation that Stripe and Advent could raise to $70 per share. The deal would give Stripe access to PayPal's 430 million consumer accounts and PayPal — Venmo's peer-to-peer network. PayPal shares rose over 15% on the news. The proposed acquisition adds to consolidation in the payments industry, with recent deals including Global Payments' acquisition of FIS (company) — Worldpay and Nuvei's acquisition of Payoneer.