<ul><li>Australian BNPL provider Zip and its US rival Sezzle have mutually terminated their previously announced merger agreement. The definitive agreement announced in February would have seen Zip acquire the US player for AUD 491 million (~USD 352 million) in an all-share deal. The deal was a 22% premium to Sezzle's closing price at the time. The deal was initially reported in January this year.</ul>

• As a result of the termination, Zip will pay USD 11 million to Sezzle to cover legal, accounting, and other expenses related to the transaction. Zip reiterated its commitment to achieving group profitability during FY 2024. 

<ul><li> Analyst QuickTake: Prior to the initial announcement of this acquisition, Zip had a long history of expanding geographically through M&As. The acquisition of Sezzle would have positioned it to compete with the likes of Affirm and Klarna in the US, with the combined entity having a total of 8.8 million customers and over 60,000 merchants in the US. The decision was likely driven by the economic headwinds the industry is facing, which have led to layoffs and steep discounts on company valuations. In a similar move, Australian payments firm Latitude Group Holdings Ltd. (Latitude) terminated its AUD 335 million (USD 235 million) offer to purchase Humm Consumer Finance (HCF).</ul>