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PayPal confirms that it is buying payments startup iZettle for $2.2B in an all-cash deal

PayPal is taking its biggest bet yet on point-of-sale transactions, small businesses and markets outside of the U.S. as it looks to raise its game against Square, Stripe and others in the world of payments: The company has confirmed that it is buying iZettle — the Stockholm-based payments provider commonly referred to as the “Square of Europe” — for $2.2 billion in an all-cash deal.

The deal — which is expected to close in Q3 2018 — will see iZettle’s  co-founder and CEO Jacob de Geer stay on to lead iZettle. He will report to PayPal’s  COO Bill Ready. Others in iZettle’s exec team will also stay on to run the business, which will become a “center of excellence” for in-store and offline payments in Europe, PayPal said.

The timing of the deal is notable: It comes on the heels of iZettle filing for an IPO earlier this month (just nine days ago, in fact) in its own bid to scale out its business: iZettle had planned to raise $227 million on the Stockholm Nasdaq exchange, which would have valued the company at around $1.1 billion.