PayPal has received a joint acquisition proposal from Stripe and Advent International at a significant premium to its recent share price.
Reuters reported that the bidders are offering US$60.50 per share, valuing PayPal at more than US$53 billion.
The price is about 28 percent above the company’s closing level on Tuesday, according to two people familiar with the matter.
Under the proposed arrangement, Stripe and Advent would divide ownership of PayPal equally while continuing to operate it as one group.
The two firms approached PayPal in early April before submitting a formal offer earlier this month.
They have yet to receive a response and are seeking further discussions in the coming weeks.
About US$50 billion in bank financing has been committed to support the proposed acquisition, one of the sources told Reuters.
PayPal, Stripe and Advent declined to comment. The approach remains preliminary and may not result in a transaction.
The proposal comes as PayPal restructures its operations under Chief Executive Enrique Lores, who took over in March.
In April, the company reorganised its business around checkout, consumer financial services and payment services.
PayPal is seeking to strengthen growth as competition intensifies across digital payments.
Its market value has declined substantially from the levels reached during the pandemic.
Featured image: Edited by Fintech News Singapore, based on image by shakilui via Magnific
