A financial technology company that traces its roots to Vancouver has found a buyer willing to dig deep into its own wallet.
PayPal Holdings, Inc. (NASDAQ: PYPL) is acquiring Hyperwallet Systems Inc. for US$400 million.
Hyperwallet’s platform specializes in helping businesses manage payments to freelancers and contractors.
The company was founded in Vancouver, where it maintains two offices.
Since its launch in 2000 the fintech has moved more of its presence to the U.S.
Most of its executive team, including CEO Brent Warrington, is based in Austin, Texas.
“We are thrilled to be joining forces with a powerhouse like PayPal,” Warrington said in a June 19 statement.
“Combining Hyperwallet’s advanced payout capabilities with PayPal’s scale will bring increased value to both Hyperwallet’s and PayPal’s customers. This is an outstanding opportunity to supercharge Hyperwallet’s growth and further our mission to pay the planet.”
The Hyperwallet deal is only the latest high-profile acquisition PayPal has made targeting a Vancouver company.
In February 2017 PayPal paid $304 million for TIO Networks in a deal that saw the payments giant shell out $3.35 per share in cash — a 22.6% premium above its 20-trading day average price.
The all-cash Hyperwallet deal is expected to close by the end of the year, subject to regulatory approval.
