Australian buy-now-pay-later company Afterpay to be bought by US giant Square for A$39bn

Australian shareholders will own about 18.5% of combined business under deal, which the two companies say will create an online payments powerhouse

Australian Stock Exchange-listed buy-now-pay-later company Afterpay will be bought out by US fintech giant Square for A$39bn.

Digital transactions and point of sale business Square said on Monday it had agreed to purchase the company in an all-stock deal worth US$29bn. Afterpay shareholders will get 0.375 shares of Square class A stock for every share they own, or around a price of A$126.21 per share based on Square's Friday close.