PayPal Significantly Expands Global Omnichannel Platform With Acquisition of iZettle

Expands offering in 12 markets, adding in-store capabilities in 11
markets

Provides scalable platform for rapid geographic expansion

Advances PayPal’s mission to help small businesses grow and thrive in
the global digital economy

SAN JOSE, Calif. & STOCKHOLM–(BUSINESS WIRE)–PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it has agreed
to acquire iZettle, the leading small business commerce platform in
Europe and Latin America, for $2.2 billion USD. The acquisition of
iZettle significantly expands PayPal’s in-store presence, strengthening
PayPal’s platform to help millions of small businesses around the world
grow and thrive in an omnichannel retail environment.


“Small businesses are the engine of the global economy and we are
continuing to expand our platform to help them compete and win online,
in-store and via mobile,” said PayPal President and CEO Dan Schulman.
“iZettle and PayPal are a strategic fit, with a shared mission, values
and culture—and complementary product offerings and geographies. In
today’s digital world, consumers want to be able to buy when, where and
how they want. With nearly half a million merchants on their platform,
Jacob de Geer and his team add best-in-class capabilities and talent
that will expand PayPal’s market opportunity to be a global one-stop
solution for omnichannel commerce.”

This combination brings together iZettle’s in-store expertise,
recognized brand and digital marketing strength with PayPal’s global
scale, mobile and online payments leadership, and trusted brand
reputation.

Upon closing, PayPal gains in-store capabilities in the following 11
markets: Brazil, Denmark, Finland, France, Germany, Italy, Mexico,
Netherlands, Norway, Spain and Sweden. PayPal also gains near-term
in-store expansion opportunities into other existing PayPal markets, and
acceleration of omnichannel commerce solutions in Australia, U.K. and
U.S.

“Combining our assets and expertise with a global industry leader like
PayPal allows us to deliver even more value to small businesses to help
them succeed in a world of giants,” said iZettle CEO Jacob de Geer. “The
combination of iZettle and PayPal will provide tremendous benefits to
our merchants who will have access to an even wider range of tools to
help them get paid, sell smarter and grow.”

iZettle expects to generate gross revenues of approximately $165 million
USD in 2018, with approximately $6 billion USD of total payment volume
(TPV) expected to be processed on its platform. The company has grown
its revenues at a CAGR of approximately 60% from 2015 to 2017. iZettle
expects to reach EBITDA profitability by 2020 on a standalone basis.

Once the acquisition closes, Jacob de Geer will continue to lead
iZettle, which will operate as an integral part of PayPal’s merchant
services offering, reporting to PayPal’s Chief Operating Officer Bill
Ready. iZettle’s experienced management team, who have a demonstrated
track record of scaling at pace, will continue running the business,
ensuring continuity for customers, employees and partners. Upon closing,
iZettle will become the European center of excellence for PayPal’s
in-store product and services offerings.

The transaction is expected to be approximately $0.01 dilutive to
PayPal’s previously communicated full year 2018 non-GAAP EPS. The
transaction is expected to close in the third quarter of 2018. The
completion of this transaction is subject to customary closing
conditions, including regulatory approvals. The two companies will
continue to operate independently until close.

A slide presentation with an overview of the transaction can be accessed
through the company’s Investor Relations website at investor.paypal-corp.com.
PayPal will host an Investor Day on May 24, 2018 in San Francisco,
Calif. and management will provide additional details related to the
transaction. A live webcast of the event will be available at investor.paypal-corp.com
starting at 8:30 a.m. PDT.

Evercore is acting as sole financial adviser to PayPal, and Skadden,
Arps, Slate, Meagher & Flom LLP and Roschier are acting as its legal
advisers with regard to the transaction. J.P. Morgan Securities plc is
acting as sole financial adviser to iZettle, while Gernandt & Danielsson
is acting as its legal adviser.

About PayPal

Fueled by a fundamental belief that having access to financial services
creates opportunity, PayPal Holdings, Inc. (NASDAQ: PYPL) is committed
to democratizing financial services and empowering people and businesses
to join and thrive in the global economy. Our open digital payments
platform gives PayPal’s 237 million active account holders the
confidence to connect and transact in new and powerful ways, whether
they are online, on a mobile device, in an app, or in person. Through a
combination of technological innovation and strategic partnerships,
PayPal creates better ways to manage and move money, and offers choice
and flexibility when sending payments, paying or getting paid. Available
in more than 200 markets around the world, the PayPal platform,
including Braintree, Venmo and Xoom, enables consumers and merchants to
receive money in more than 100 currencies, withdraw funds in 56
currencies and hold balances in their PayPal accounts in 25 currencies.
For more information on PayPal, visit https://www.paypal.com/about
or follow us at @PayPalNews.
For PayPal Holdings, Inc. financial information, visit https://investor.paypal-corp.com.

About iZettle

iZettle is on a mission to help small businesses succeed in a world of
giants. Founded in Stockholm in 2010, the financial technology company
revolutionized mobile payments with the world’s first mini chip card
reader and software for mobile devices. Today iZettle’s commerce
platform for small businesses in Europe and Latin America provides tools
to get paid, sell smarter and grow your business. iZettle’s current
largest shareholders are Zouk Capital, Index Ventures and 83North.

Forward-Looking Statements

This announcement contains “forward-looking” statements within the
meaning of applicable securities laws. Forward-looking statements and
information relate to future events and future performance and reflect
PayPal’s expectations regarding the impact of this transaction on
PayPal’s and iZettle’s financial and operating results and business, the
operation and management of iZettle after the acquisition, and the
timing of the closing of the acquisition. Forward-looking statements may
be identified by words such as “seek”, “believe”, “plan”, “estimate”,
“anticipate”, expect”, “intend”, and statements that an event or result
“may”, “will”, “should”, “could”, or “might” occur or be achieved and
any other similar expressions.

Forward-looking statements involve risks and uncertainties which may
cause actual results to differ materially from the statements made, and,
accordingly, readers should not place undue reliance on forward-looking
statements and information. Factors that could cause or contribute to
such differences include, but are not limited to, the timing and
possible outcome of security holder and regulatory approvals in
connection with the transaction, the possibility that the transaction
may not close, the reaction to the transaction of iZettle’s customers
and business partners, the reaction of competitors to the transaction,
the retention of iZettle’s employees, PayPal’s plans for iZettle,
economic and political conditions in the global markets in which PayPal
and iZettle operate, the future growth of PayPal’s and iZettle’s
businesses and the possibility that integration following the
transaction may be more difficult than expected. More information about
these and other factors can be found in PayPal Holdings, Inc.’s most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and other filings with the Securities and
Exchange Commission (the “SEC”), and its future filings with the SEC.

PayPal expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statements contained
herein to reflect any change in the expectations with regard thereto or
any change in events, conditions or circumstances on which any such
statement is based.

Contacts

PayPal Holdings, Inc.
PayPal Investor Relations
Gabrielle
Rabinovitch
grabinovitch@paypal.com
or
PayPal
Media Relations

Amanda Miller, +1 408-219-0563
amandacmiller@paypal.com
or
Neil
Cassley, +44 (0)7500 813852
ncassley@paypal.com