Square, Inc.’s A$39 Billion Acquisition of Afterpay

Wachtell, Lipton, Rosen & Katz and King & Wood Mallesons are serving as legal advisors to Square. Gilbert + Tobin and Cravath, Swaine & Moore are serving as Afterpay’s legal advisors.

Square, Inc. (NYSE: SQ) and Afterpay Limited (ASX: APT) entered into a Scheme Implementation Deed under which Square has agreed to acquire all of the issued shares in Afterpay by way of a recommended court-approved Scheme of Arrangement, implying a value for Afterpay of $39 billion based on the closing price of Square common stock on 30 July 2021.

Afterpay, the pioneering global ‘buy now, pay later’ (BNPL) platform, will accelerate Square’s strategic priorities for its Seller and Cash App ecosystems. The acquisition brings together two of the fastest growing global fintech brands to advance their shared mission of economic empowerment and financial inclusion.              

Afterpay Limited is an Australian financial technology company operating in Australia, the United Kingdom, Canada, the United States, and New Zealand.    

Square, Inc. builds tools to empower businesses and individuals to participate in the economy. 

Morgan Stanley & Co. LLC is serving as financial advisor to Square. Goldman Sachs and Qatalyst Partners are serving as financial advisors to Afterpay and Highbury Partnership is serving as financial advisor to Afterpay’s Board.

G+T’s market-leading M&A team was led by Partners Peter Cook (Picture) and Rachael Bassil with lawyers Olivia Blakiston, Elizabeth Cameron and Clancy Bradshaw heavily involved in the deal aspects.  Competition + Regulatory Partner Charles Coorey, consultant Zoe Hodgins and lawyer Robert Albertson Kill advised on competition and regulatory aspects of the transaction.  The deal team was supported by a large group of dedicated lawyers across the Firm.

The Cravath team is led by partners Damien R. Zoubek and Jenny Hochenberg and includes associates William F. Roegge, Richard E. Schwartz, Rachel L. Schlobohm and Evan S. Gabor on M&A matters; partner David L. Portilla on bank regulatory matters; partner Lauren Angelilli and associates Andrew T. Davis and Kyle R. Jorstad on tax matters; partner Matthew J. Bobby and associates Christopher C. Gonnella, Anna Mikaelyan and David Crampton on executive compensation and benefits matters; partner David J. Kappos and associate Carys J. Webb on intellectual property matters; partner Margaret T. Segall and practice area attorney Nicole M. Peles on antitrust matters; senior attorney Joyce Law and practice area attorney Brian M. Budnick on real estate matters; and partner Matthew M. Kelly and associate Temiloluwa A. Dele-Dare on financing matters.

Wachtell Lipton’s team is led by Ronald C. Chen and David C. Karp and consists of Corporate Kwon-Yong Jin, Associate, Anna Dimitrijevic, Law Clerk, Executive Compensation and Benefits Adam J. Shapiro, Partner, Sasha F. Belinkie, Associate, Tax
Joshua M. Holmes, Partner, Antitrust Nelson O. Fitts, Partner, Bank Regulatory Jeffrey A. Watiker, Counsel, Intellectual Property, Selwyn B. Goldberg, Of Counsel, Nicole D. Sharer, Associate, Finance, Gregory E. Pessin, Partner, and Daniel J. Wertman, Associate.

Involved fees earner: Lauren Angelilli – Cravath Swaine & Moore; Matthew Bobby – Cravath Swaine & Moore; Brian Budnick – Cravath Swaine & Moore; David Crampton – Cravath Swaine & Moore; Andrew Davis – Cravath Swaine & Moore; Temiloluwa Dele-Dare – Cravath Swaine & Moore; Margaret Segall D’Amico – Cravath Swaine & Moore; Evan Gabor – Cravath Swaine & Moore; Christopher Gonnella – Cravath Swaine & Moore; Kyle Jorstad – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Matthew Kelly – Cravath Swaine & Moore; Joyce Law – Cravath Swaine & Moore; Anna Mikaelyan – Cravath Swaine & Moore; Nicole Peles – Cravath Swaine & Moore; David Portilla – Cravath Swaine & Moore; William Roegge – Cravath Swaine & Moore; Rachel Schlobohm – Cravath Swaine & Moore; Richard Schwartz – Cravath Swaine & Moore; Carys Webb – Cravath Swaine & Moore; Damien Zoubek – Cravath Swaine & Moore; Rachael Bassil – Gilbert + Tobin; Olivia Blakiston – Gilbert + Tobin; Clancy Bradshaw – Gilbert + Tobin; Elizabeth Cameron – Gilbert + Tobin; Peter Cook – Gilbert + Tobin; Charles Coorey – Gilbert + Tobin; Zoe Hodgins – Gilbert + Tobin; Robert Kill – Gilbert + Tobin; Sasha Belinkie – Wachtell, Lipton, Rosen & Katz; Ronald Chen – Wachtell, Lipton, Rosen & Katz; Nelson Fitts – Wachtell, Lipton, Rosen & Katz; Selwyn Goldberg – Wachtell, Lipton, Rosen & Katz; Joshua Holmes – Wachtell, Lipton, Rosen & Katz; Kwon-Yong Jin – Wachtell, Lipton, Rosen & Katz; David Karp – Wachtell, Lipton, Rosen & Katz; Gregory Pessin – Wachtell, Lipton, Rosen & Katz; Adam Shapiro – Wachtell, Lipton, Rosen & Katz; Nicole Sharer – Wachtell, Lipton, Rosen & Katz; Jeffrey Watiker – Wachtell, Lipton, Rosen & Katz; Daniel Wertman – Wachtell, Lipton, Rosen & Katz;

Law Firms: Cravath Swaine & Moore; Gilbert + Tobin; Wachtell, Lipton, Rosen & Katz;

Clients: Afterpay; Square Inc.;

Author: Sonia Carcano