At
PayPal, we believe that small businesses are the engine of the new global economy, and that small business owners should be able to access the capital they need, when they need it, based on the strength of their business. That’s why we launched
PayPal Working Capital in 2013, a unique business financing product that has responsibly provided access to more than $3 billion in funding to more than 115,000 small businesses. Increasing access to capital is vital to the success of small businesses and is a strategic offering for PayPal, which drives merchants' sales growth, increases processing volume, and reduces merchant churn.
As part of our continued efforts to support the hard work of small business owners and entrepreneurs, I am pleased to announce that PayPal has agreed to acquire Swift Financial, a leading provider of working capital solutions to small businesses in the U.S.
Headquartered in Wilmington, Delaware, Swift Financial was established in 2006 with the idea that the right funding can unleash the full potential of a business. Since then, Swift has provided funding to thousands of growing companies in the U.S. through a unique combination of data, technology, and outstanding customer service, which has been recognized for excellence by J.D. Power.
We know and value Swift’s technology platform and people, and we believe their talent and capabilities will further strengthen our overall merchant value proposition. Building upon an existing commercial relationship, the acquisition of Swift Financial will enable us to better serve small businesses by enhancing our underwriting capabilities to provide access to affordable business financing solutions to more businesses to help them grow and thrive. While PayPal Working Capital provides access to capital based exclusively on proprietary insights, Swift’s technology will allow us to assess supplemental information to more fully understand the strength of a business and provide access to complementary financing products to meet the needs of small and mid-sized businesses. With these capabilities, Swift Financial will help accelerate our efforts to democratize financial services by enabling PayPal to further fill the small business funding gap.
The acquisition is expected to close later in the year, subject to certain closing conditions, including the expiration or early termination of the applicable pre-merger waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Together, PayPal and Swift Financial can help unleash the potential of small businesses. I look forward to welcoming the Swift team to the PayPal family.
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Customary Statement Regarding Forward-Looking Information
This announcement contains “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements and information relate to future events and future performance and reflect PayPal’s expectations regarding the impact of this transaction on PayPal’s and Swift Financial’s financial and operating results and business, the operation and management of Swift Financial after the acquisition, and the timing of the closing of the acquisition. Forward-looking statements may be identified by words such as “seek”, “believe”, “plan”, “estimate”, “anticipate”, expect”, “intend”, and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved and any other similar expressions.
Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from the statements made, and, accordingly, readers should not place undue reliance on forward-looking statements and information. Factors that could cause or contribute to such differences include, but are not limited to, the timing and possible outcome of security holder and regulatory approvals in connection with the transaction, the possibility that the transaction may not close, the reaction to the transaction of Swift Financial’s customers and business partners, the reaction of competitors to the transaction, the retention of Swift Financial's employees, PayPal’s plans for Swift Financial, economic and political conditions in the global markets in which PayPal and Swift Financial operate, the future growth of PayPal’s and Swift Financial’s businesses and the possibility that integration following the transaction may be more difficult than expected. More information about these and other factors can be found in PayPal Holdings, Inc.’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (the “SEC”), and its future filings with the SEC.
PayPal expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.