Afterpay is accelerating growth with an acquisition in the UK

Chris J Ratcliffe/Getty Images
  • Afterpay Group Revenue and Other Income of $142.3 million, up 390%.
  • The buy-now-pay-later company also announced the acquisition of a UK payments business.
  • And launched an equity raising of $108.1 million at $15.75.

Afterpay Touch, the fast growing buy-now-pay-later fintech, announced its launch in the UK with the acquisition of payments company ClearPay.

The company also announced an equity raising of at least $108.1 million at $15.75 a share, a discount of almost 10%.

Afterpay also posted its annual results, showing revenue up 397% to $113.9 million and a loss of $9 million.

At the close, Afterpay shares were 1.7% higher at $18.55.

Customers of ClearPay can purchase items up to £450 and make repayments in three interest-free monthly installments.

Afterpay will acquire 90% of the issued shares in ClearPay for 1 million Afterpay shares. These last traded at $18.55.

The fintech also has an option to acquire the remaining shares from the current owner, ThinkSmart.

“The acquisition of ClearPay will allow Afterpay to accelerate its entry into the UK market and enable further deployment of Afterpay’s global system,” the company said.

The company’s business in the US has been building momentum with more than 800 retailer contracts signed and 150,000 registered customers having transacted.

Afterpay started trading in the US in May this year. Underlying sales was $A12 million in June and $A20 million in July.

“In line with its retailer-led strategy, Afterpay has determined that the UK, as the world’s third largest e-commerce market with more than £133b in online retail sales per annum, represents the next logical step for international expansion,” the company said.

The Australian technology-driven payments company launched in 2015 now estimates it processes more than 10% of all physical online retailing in Australia.

Afterpay was last month named FinTech Organisation of the Year for a second year in a row and its CEO and founder, Nick Molnar, the Emerging FinTech Leader of the Year.

The 2018 Afterpay results in numbers:

Source: Afterpay

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.