Summits Yellow

PayPal to spend up to $3bn a year on M&A

Tyrone Stewart

PayPalFollowing the acquisitions of iZettle and Simility for a combined total of over $2.3bn, PayPal is still on the lookout for more business in the second half of the year.

Speaking to German publication Handelsblatt (link in German), PayPal president and CEO Dan Schulman said the company would be looking to spend between $1bn and 3$bn each year on mergers and acquisitions.

“We have a healthy balance sheet and we are ready to put it to work to buy more companies. It is likely we will continue to buy very specific skills,” said Schulman. “I wouldn’t rule out that we take on a bigger deal, if there’s a good fit for us.”

Despite the company’s desire to continue bringing in the other businesses, it’s clear that it is not in any way strategically dependent on these deals.

Over the last few years, PayPal has agreed to collaborate with the like of Google, Microsoft, and Alibaba – alongside financial service providers – and it sees these partnerships as a key to its strategy.

“Much of what we have bought in the past can now be represented through partnerships,” said Schulman. “In the past 18 to 24 months, we have announced 25 major collaborations with tech companies… as well as with various financial service providers. And we are eager to work as a neutral platform with other financial service providers and banks.”