Zip Co (Z1P) raise money, to buy Sezzle
Z1P Trading Halt: The Buy Now Pay Later (BNPL) company was in a trading halt today following the announcement of their 1H22 results, the acquisition of competitor Sezzle (SZL) and a ~$200m equity raise priced at $1.90, $149m of which is underwritten. The price of $1.90 represents a 14% discount to the last close. We attended a management presentation today as they went through the rationale for the deal with the big one being scale. While the timing could be better in terms of both the geopolitical backdrop and the level of the Zip share price, it seems clear that a combined group will have a better chance of reaching profitability in a palatable time frame, with a better platform in the US to attract large merchants.
MM is neutral Z1P around $2.20
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