Stripe and Advent International have delivered a joint takeover proposal for PayPal Holdings Inc, offering $60.50 per share in a deal that would place the payments company at a valuation above $53 billion, according to people familiar with the matter who spoke on Tuesday.
The cash bid equates to roughly a 28% premium to PayPals closing share price on Tuesday. The approach was submitted earlier in July and follows an initial outreach that occurred in April. Those familiar with the discussions say the proposal is supported by about $50 billion in committed financing provided by banks.
Under the terms outlined by the bidding parties, Stripe and Advent would jointly own PayPal, each taking an equal stake if the transaction proceeds. The two suitors are reported to be targeting completion of a deal by the month-end.
As of the latest reports, PayPal has not responded to the offers and did not immediately reply to an emailed request for comment.
Context and mechanics
The joint proposal is structured as a per-share cash offer, specifying $60.50 for each PayPal share. The backstop for the transaction is described as roughly $50 billion in committed bank financing, indicating substantial lender support for the acquisition if it moves forward. The bid represents a material premium relative to the most recent closing price, and follows an earlier approach that was made in April.
Timing
Those involved in the discussions say the bidders want to secure a deal by the close of the current month. The timeline implies expedited negotiations should PayPal engage with the proposal.
Market and stakeholder signals
The offer would result in joint ownership of PayPal by a payments technology company and a private equity firm, splitting ownership equally between Stripe and Advent. The reported financial backing from banks suggests substantial external support for the transaction financing.