Afterpay Ltd (ASX:APT) today announces that its wholly owned subsidiary, Clearpay (Europe) Limited, has completed its acquisition of Pagantis SAU and PMT Technology SLU in preparation for Afterpay’s expansion into Europe.

With the Pagantis acquisition now closed, Afterpay plans to progress with the launch of its Clearpay services in Europe. Spain, France and Italy will be the first countries to go live with Clearpay. These countries combined have an addressable ecommerce market that exceeds €150 billion.

Back in August 2020, Afterpay announced that its wholly owned subsidiary, Clearpay (Europe) Limited, had entered into a Share Purchase Agreement with NBQ Corporate SLU to acquire 100% of the shares outstanding in Pagantis.

As part of the Agreement, NBQ will receive a minimum €50 million in consideration (subject to customary adjustments), payable as follows:

• Upfront consideration (Upfront Consideration) – €5 million in cash payable at completion; and
• Deferred consideration (Deferred Consideration) – €45 million in cash, payable 3 years post completion. Deferred Consideration can exceed €45 million provided the equity value of Pagantis exceeds €45 million, 3 years post completion.

Speaking of Afterpay’s expansion, let’s recall that, in February 2021, the company announced that it will increase its ownership of Afterpay US.

Afterpay has entered into an agreement with Matrix Partners X, L.P and Weston & Co X LLC, and is launching a tender offer to eligible participants under the Afterpay US, Inc. 2018 Equity Incentive Plan (US ESOP) to increase its underlying interest in Afterpay US, Inc. from existing levels of 80% to up to approximately 93%.