PayPal Holdings NASDAQ:PYPL shares surged about 15% on Wednesday after Reuters reported that Stripe and private equity firm Advent International had jointly offered to acquire the digital payments company in a deal valued at more than $53 billion, citing people familiar with the matter.
The reported proposal values PayPal at $60.50 per share, representing a premium of about 28% over its previous closing price. Reuters said the transaction would give Stripe and Advent equal ownership and is backed by roughly $50 billion in committed bank financing. PayPal has not yet responded to the offer.
PayPal and Advent declined to comment on the report, while Stripe did not immediately respond to requests for comment. If completed, the acquisition would combine one of the earliest online payments providers with a fintech company that has become a major player in digital payment processing.
The reported bid comes after PayPal's market value declined sharply from its 2021 peak as competition in digital payments intensified. Chief Executive Enrique Lores has been leading a restructuring effort that includes dividing the company into three business units and targeting about $1.5 billion in cost savings over the next several years.