Stripe and Advent International have submitted a joint acquisition proposal for PayPal Holdings Inc that would pay $60.50 per share, according to people familiar with the matter. At that price the transaction would put PayPal's enterprise value at more than $53 billion. Those people requested anonymity because the discussions are confidential.
The bid was filed earlier this month and is supported by about $50 billion in committed financing from banks, the sources said. The suggested price equates to approximately a 28% premium over PayPal's closing share price on Tuesday.
Representatives for Advent declined to comment, while PayPal and Stripe did not immediately respond to requests for comment, the people said.
The approach follows an initial outreach that occurred in early April, the sources added. According to those people, Stripe and Advent have yet to receive a reply from PayPal and are aiming to finalize an agreement by the end of the month.
Under the terms outlined in the proposal, Stripe and Advent would acquire PayPal together and each would retain an equal ownership stake in the combined ownership structure rather than pursuing a breakup of the company, the people said. The sources emphasized there is no certainty the approach will culminate in a deal.
Key timing in the matter is driven by the timeline described by the bidders, who are seeking a response within weeks of submitting the offer. The combination of a strategic payments operator and a private equity firm, if completed as proposed, would result in joint ownership rather than separation of PayPal's assets.
Contextual note: The account above reflects the details provided by the people familiar with the discussions. It reports the offer amount, the financing backing, the stated premium to recent market pricing, the prior outreach in early April, the proposed joint ownership arrangement, and the absence of a guarantee the transaction will occur.