Australian rival Zip has terminated the acquisition of USBuy, Buy Later (BNPL) company Sezzle, and the two companies have agreed to close each other’s transactions.
Initially announced earlier this year, Zip aims to support its global expansion plans, especially its entry into the US market.
However, in a statement to the Australian Stock Exchange (ASX), Zip cites “current macroeconomic and market conditions” as the reason behind the termination.
Nonetheless, the company adds that the United States “continues to be a core market and focus area and is an important opportunity for business.”
As part of the deal to terminate the merger, Zip will pay Sezzle $ 11 million (A $ 16 million) to cover transaction-related costs such as legal and accounting costs.
Diane Smith-Gander, chair of Zip’s board of directors, said: Business in the current environment. “
Earlier this month Business News Australia Zip reported that it was set to shut down the money management app Pocketbook. Sky news Last week, the company reported that it was aiming to withdraw from the UK after starting its business in the UK about a year ago.