12 July 2022
Zip Co Limited and Sezzle Inc Terminate the Merger Agreement for Zip’s Proposed Acquisition of Sezzle
In light of current macroeconomic and market conditions, Zip Co Limited (ASX: ZIP)
(“Zip”, or the “Company”) and Sezzle Inc. (ASX:SZL) (“Sezzle”) have mutually agreed to
terminate their previously announced merger agreement for the proposed acquisition
of Sezzle by Zip.
Zip remains firmly focused on its strategic plan and accelerating its path to profitability.
Zip’s underlying business remains strong with consistent customer and transaction
volume growth across core markets, and a solid pipeline of enterprise merchants joining
the platform. The US remains a core market and area of focus, and a significant
opportunity for the business. Zip is well capitalised to execute on its strategy and in line
with previous guidance, Zip continues to expect to deliver group profitability during FY24.
As part of the mutual termination, Sezzle will receive from Zip U.S. $11 million, to cover,
among other things, Sezzle’s legal, accounting, and other costs associated with the
transaction.
Chair of the Zip Board Diane Smith-Gander said:
“We believe that mutually terminating the merger agreement with Sezzle at this
time is in the best interests of Zip and its shareholders, and will allow Zip to focus
on its strategy and core business in the current environment.”
Release approved by Chair on behalf of the Board.
– ENDS –
For more information, please contact:
Vivienne Lee
Director, Investor Relations
vivienne.lee@zip.co
For general investor enquiries, email investors@zip.co
About Zip
ASX-listed Zip Co Limited (ASX: ZIP) (ABN 58 164 440 993) is a leading global financial
services company, offering innovative, people-centered products that bring customers
and merchants together. On a mission to be the first payment choice everywhere and
every day, Zip offers point-of-sale credit and digital payment services in 14 markets
around the world, including through strategic investments, connecting millions of
customers with its global network of tens of thousands of merchants.
One of the fastest growing BNPL providers globally, Zip has a presence in Australia,
Canada, Czech Republic, India, Mexico, New Zealand, the Philippines, Poland, Saudi
Arabia, Singapore, South Africa, UAE, the United Kingdom and the USA. Zip provides fair,
flexible and transparent payment options to individual consumers and SMBs, helping
them to take control of their financial future and helping merchants to grow their
businesses. Zip is committed to responsible lending and also owns Pocketbook, a leading
personal financial management tool. Zip is managed by a team with over 100 years’
experience in retail finance and payments and is a licensed and regulated credit
provider. Zip was founded in Australia in 2013.
For more information, visit: www.zip.co
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all future correspondence, visit http://www.computershare.com.au/easyupdate/ZIP
