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IZettle's Evening Sale to PayPal Is a $2.2 Billion Change of Heart

  • Company had been planning to price shares for IPO Friday
  • CEO changed mind after meeting executive team at PayPal
An iZettle chip and pin reader.

An iZettle chip and pin reader.

Photographer: Johan Jeppsson/Bloomberg

Updated on

iZettle AB finalized its deal to be bought by PayPal Holdings Inc. for $2.2 billion the evening before the Swedish fintech startup was set to price its shares in an initial public offering.

It looked like an abrupt about-face for the company, which competes with Square Inc. and Canada’s Shopify Inc. On May 8 it announced it was seeking to raise 2 billion kronor ($226.6 million) in an initial public offering to be completed this year. Yet just days later, it’s been bought by a U.S. competitor.