Investors are cheering Zip Co’s overseas dream, with shares in the Afterpay rival jumping nearly 10 per cent on the acquisition of New Zealand-based platform PartPay.
Zip Co, which also competes with Splitit and Sezzle in Australia, said the proposed $NZ50 million ($A48.13 million) PartPay purchase would give it exposure to new credit markets in NZ, the UK, the US and South Africa.
“This transaction marks the beginning of Zip’s global expansion story,” Zip boss Larry Diamond said after the proposal was unveiled on Tuesday.
Zip also announced to the ASX it was spending $US11.4 million ($A16.83 million) to increase its stake in US-based instalment service QuadPay to 15 per cent.
Zip expects to complete the PartPay transaction by the end of October 2019, subject to shareholder approval, while the QuadPay deal should be wrapped up by September 27.
Zip Co shares were trading 9.97 per cent higher at $3.31 by 1340 AEST.