Australian company Afterpay is set to be bought by an American company for a whopping $39 billion.
Twitter CEO Jack Dorsey's Square is finalising the paperwork on purchasing the buy-now-pay-later entity that was started by two Aussies seven years ago.
Nick Molnar and Anthony Eisen said following the announcement: "The transaction marks an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world.
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"It also provides our shareholders with the opportunity to be a part of future growth of an innovative company aligned with our vision."
Afterpay has skyrocketed in popularity in Australia in the past few years and it has made a big splash overseas.
The company has since broken into the US, Canada and New Zealand, and is known as Clearpay in the UK, France, Italy and Spain.
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In June last year, the company had nearly 10 million users. That number has exploded to 16.2 million in a little more than 12 months.
Square has entered into an agreement to buy all the shares of Afterpay, which will make it the biggest buyout deal in Australian corporate history.
Off the back of the news early this morning (August 2), Afterpay shares jumped 20 per cent and the Australian Stock Exchange also saw massive leaps.
Jack Dorsey said: "We built our business to make the financial system more fair, accessible, and inclusive - and Afterpay has built a trusted brand aligned with those principles.
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"Together we can better connect our cash app and seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back into their hands."
The deal has been unanimously approved by Afterpay's board.
Anthony Eisen and Nick Molnar will join Sqaure's board and the company will also appoint one of Afterpay's directors to the board as well.
Featured Image Credit: AfterpayTopics: Australia