Shares of PayPal (PYPL) are up 20% on reports that the financial technology company has received a $53 billion U.S. takeover offer from Stripe and Advent International.
Stripe, a rival payments firm, and Advent International, a private equity company, have reportedly made a joint offer to acquire PayPal in a blockbuster deal.
The offer to buy PayPal is reportedly for $60.50 U.S. per share. The offer represents a 28% premium to the closing price of PayPal’s stock on July 14.
At that price, the acquisition would value PayPal at about $53 billion U.S.
The takeover bid, which has not been announced publicly, was reportedly submitted earlier this month and includes $50 billion U.S. in committed bank financing.
Media reports say that PayPal hasn’t responded to the takeover offer, which would see Stripe and Advent jointly own the company and hold equal stakes.
Both Stripe and Advent International are privately held and their stocks do not trade on a public exchange.
Prior to today (July 15), PYPL stock had declined 35% over the last 12 months to trade at $47.37 U.S. per share. Over the last five years, PayPal’s shares have fallen 84%.
