PayPal Holdings (NASDAQ:PYPL) shares jumped in U.S. premarket trading on Wednesday after a report claimed the digital payments company had received a joint takeover proposal from Stripe and private equity firm Advent International.
Report values PayPal at more than $53 billion
According to a Reuters report citing people familiar with the matter, Stripe and Advent have offered 60.50 dollars per share for PayPal, valuing the company at more than 53 billion dollars.
The proposed price represents a premium of approximately 28 percent to PayPal’s closing share price on Tuesday.
Shares rally on acquisition speculation
News of the reported bid sent PayPal shares more than 15 percent higher in premarket trading.
Shares of Dutch payments company Adyen also moved higher, gaining 2.2 percent as investors reacted to the potential consolidation within the digital payments sector.
Offer backed by committed financing
Reuters reported that the proposal was submitted earlier in July and is supported by around 50 billion dollars in committed financing provided by a group of banks.
The latest offer reportedly followed an initial approach made in April, although PayPal has not responded to either proposal.
Joint ownership proposed
Under the reported transaction, Stripe and Advent would each hold an equal ownership stake in PayPal following the acquisition.
The report added that the two parties are aiming to reach an agreement before the end of the month.
PayPal did not immediately respond to Reuters’ request for comment regarding the reported takeover approach.
PayPal stock price
