Afterpay Ltd (ASX:APT) today posted a business update for the quarter to end-September 2020, noting the progress of its expansion plans.

Afterpay said the acquisition of Pagantis is progressing well. The deal is on track for completion by the end of the 2020 calendar year, pending regulatory approval by the Bank of Spain.

A cross functional detailed 100 day integration and launch plan has been developed to ensure the business can launch as soon as possible post completion.

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

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

• Upfront Consideration – €5m in cash payable at completion; and
• Deferred Consideration – €45m in cash, payable 3 years post completion.

Pagantis currently provides a range of buy now, pay later and traditional credit services across Spain, France and Italy, with regulatory approval to also operate in Portugal and a pending application to passport its payment institution licence into Germany.

Afterpay is acquiring the Pagantis corporate entities, regulatory licences, multilingual technology stack and platform, intellectual property, contracts with relevant service providers, and an experienced, fully staffed team (69 FTEs) with local knowledge of the EU market and regulatory landscape.