As reported in the Australian Financial Review, the transformational $491 million transaction will create a merged group with greater scale to further Zip’s global expansion plans, particularly in the critical US market.
The cross-practice ABL transaction team was led by Corporate and M&A partners, Jeremy Leibler and Gavin Hammerschlag, supported by Vidushee Deora (Senior Associate), Max Grunwald (Lawyer) and law graduates Kaitlin Bakken and Natalie Ryan. Given the complexity of the cross-border deal, additional specialist advice was provided by Jonathan Ortner (Partner, Tax), George Bassil (Lawyer, Tax), Zaven Mardirossian (Partner, Competition) and Gabriel Sakkal (Senior Associate, Competition). The team worked alongside US law firm Skadden, Arps, Slate, Meagher & Flom to manage the US law aspects of the transaction.
The ABL team also advised on Zip’s recent equity capital raising of up to $198.7 million, involving a $148.7 million fully underwritten placement and $50 million share purchase plan to help strengthen Zip’s balance sheet and capitalise on potential synergies from the acquisition.
Zip Co-Founder and CEO, Larry Diamond said: “We are delighted to be bringing Zip and Sezzle together under a transformational transaction that is expected to deliver immediate scale and enhanced growth, which will support our path to profitability. Combining with Sezzle positions us as a leading global BNPL provider and prioritises our ability to win in the important US market”.
Gavin Hammerschlag commented: “We’re really pleased to have worked with Zip’s management team on another strategically important transaction. Having acted for Zip on its journey from start-up to one of the world’s top five BNPL providers, it’s exciting to see their global expansion plans continue to unfold”.
Arnold Bloch Leibler has a long standing relationship with Zip and has advised on numerous transactions, including acquisitions into the US, India, European and UAE markets.
