"Afterpay buys Pagantis" was a headline with which several financial media opened at the time because of the characteristics of this transaction. The acquisition of Pagantis by Afterpay marked an important milestone in the european fintech sector . This transaction, which was formalised in 2020, enabled Afterpay, one of the global leaders in the Buy Now, Pay Later (BNPL) market, expand its presence in Europe, thereby strengthening its competitive position. In addition, the acquisition of this company was key to Afterpay's strategy to consolidate its operation under the Clearpay brand on the continent.
Transaction context: Afterpay and Pagantis in the fintech market
Afterpay, founded in 2014 in Australia, has been a leading actor in the BNPL sector. This model allows consumers to spread payments without the need for credit cards, which has transformed the way people shop online. Its success in markets such as Australia, the United States and the United Kingdom gave it the impetus to expand into new regions.
For its part, Pagantis (formerly Digital Origin), founded in 2011 in Spain, specialised in the online finance. It also offered similar instalment payment solutions to Afterpay. The company had achieved a strong presence nationally and in other European markets, positioning itself as a fintech leader on the continent.
The interaction of the two companies before the acquisition was minimal, as they operated in different markets, but their business models were complementary.The purchase of Pagantis offered Afterpay a fast track to enter the competitive European market.
Financial analysis of the acquisition of Pagantis by Afterpay
The acquisition of Pagantis by Afterpay was completed for approximately 50 million euros. Although this figure was not huge compared to other large transactions in the sector, it was key in strategic terms. Above all, because it helped Afterpay to enter the European market quickly and laid the groundwork for the expansion of its Clearpay brand, which was already operational in the UK.
Financial details of the transaction:
- Transaction value: 50 million euros.
- Impact on the financial balance sheet: The acquisition of the company was an important step in Afterpay's expansion strategy, but it also represented a significant capital investment. In particular, because the company was already expanding in other key markets such as the United States and the United Kingdom.
Comparison with other acquisitions in the fintech sector
If we compare this acquisition with Afterpay's purchase of Clearpay in the UK, the transaction was smaller in monetary terms. Strategically, however, it was just as important.
In 2021, Afterpay has already been acquired by Block (formerly Square) by 29 billion dollars. A transaction that highlighted Afterpay's accelerated growth and relevance in the fintech ecosystem. This table reflects the sequence of those transactions in which the Australian brand participated.
| Transaction | Year | Value | Strategic relevance |
| Afterpay buys Clearpay | 2018 | Undisclosed | Entry into the British market |
| Afterpay buys Pagantis | 2020 | 50 million euros | Expansion in Europe and consolidation of Clearpay |
| Block buys Afterpay | 2021 | 29.000 millones de € | Expansion of the BNPL ecosystem globally |
Why does Afterpay buy Pagantis?
As we said, the acquisition of Pagantis had a clear strategic focus. Afterpay saw in this transaction an opportunity to increase the value of the company and subsequently accelerate the growth of its business in Europe, where the BNPL market was booming. Through Clearpay, Afterpay had already achieved a strong presence in the UK. However, it needed a platform with local infrastructure in continental to compete effectively.
Main reasons behind the purchase:
- Expansion in Europe: The acquisition gave Afterpay direct access to the Spanish, Italian and French markets.
- Consolidation of the Clearpay brand: After the acquisition, Pagantis was rebranded as Clearpay, which aligned it more clearly with Afterpay's global brand.
- Expected synergies: The following operational synergies were achieved, including the improvement of payment processes and the optimisation of technological resources.
The fact is that this purchase also helped Afterpay to obtain local licences to operate as a financial services provider in Europe. It therefore facilitated its expansion in a complex regulatory environment.
Implications of the Pagantis acquisition on the technology conglomerate
As previously mentioned, in 2021 Afterpay was acquired by Block in a deal valued at $29 billion. This transaction This transaction consolidated Afterpay's role as part of Block's global payments ecosystem, formerly known as Square.
Thus, the purchase of Pagantis and the expansion in Europe were of great importance in order to strengthen Afterpay's position, and by extension, Block's positionin the growing BNPL market.
Impact on Block's overall strategy:
- Accelerating the digitisation of payments: With Afterpay and Pagantis (Clearpay) under its umbrella, Block was able to accelerate its payments digitisation strategy not only in Europe, but globally.
- Broadening the fintech ecosystem: Block, which already had a strong payments infrastructure for small and medium-sized businesses, saw in Afterpay an opportunity to complement its services with BNPL solutions.
What did the acquisition of Pagantis mean for the European fintech sector?
Afterpay's acquisition of Pagantis underlined the growing interest in the European fintech market especially in the BNPL segment. The integration of Pagantis into the Clearpay structure allowed Afterpay to consolidate its presence in key markets and compete with other major players such as Klarna and PayPal. This resulted in:
- Increasing competition. Afterpay's entry into the European market raised competition among installment payment fintechs.
- Consolidation of the sector. The purchase of local companies by large global fintechs has led to further market consolidation.
- Evolution of the regulation. The growth of BNPL has attracted the attention of European regulators, who are adjusting regulations to protect consumers.
Frequently asked questions about the purchase of Pagantis by Afterpay
What differentiates the purchase of Pagantis from other Afterpay operations?
The acquisition of Pagantis gave Afterpay access to key European markets, consolidating its expansion in the region.
How did the acquisition of Pagantis affect Block's strategy?
The purchase reinforces Block's strategy to expand its fintech ecosystem and enter the BNPL segment, a booming market.
All in all, the purchase of Pagantis was a resounding step for Afterpay in its journey in the European BNPL market. The acquisition strengthened its presence in Europe and at the same time also helped it to consolidate the Clearpay brand in the region. In financial terms, the transaction was relatively small, but with a strong strategic impact for the future of Afterpay and Block in the global fintech ecosystem.
If you want M&A advice for the purchase or sale of technology companies, do not hesitate to contact us. Our advisors specialized in tech M&A will guarantee you the best conditions.