PayPal Holdings, Inc. (NASDAQ: PYPL) announced on Wednesday that the Company has agreed to acquire Honey Science Corporation for USD 4 Billion.
Founded in 2012, Honey is well-known for its discovery tool that helps consumers find savings as they shop online. The Company has 17 million monthly active users and has saved people more than USD 1 Billion in savings over the past year. Honey is currently partnered with over 30,000 online retailers.
PayPal said in its press release that its two-sided network in combination with Honey’s technology will transform the shopping experience for PayPal’s consumers, while increasing sales and customer engagement for merchants.
The acquisition supports PayPal and Honey’s shared mission to simply shopping experiences for consumers. Honey will accelerate its growth by driving adoption among PayPal and Venmo’s 275 million active consumer accounts and sourcing exclusive offers from PayPal’s network of 24 million merchant accounts.
“Honey is amongst the most transformative acquisitions in PayPal’s history. It provides a broad portfolio of services to simplify the consumer shopping experience, while at the same time making it more affordable and rewarding,” said Dan Schulman, President and Chief Executive Officer of PayPal.
“The combination of Honey’s complementary consumer products with our platform will significantly enhance our ability to drive engagement and play a more meaningful role in the daily lives of our consumers. As a partner of choice for our merchants, this is another way that we can help them build and strengthen their customer relationships, provide personalized offers, and drive incremental sales. The combination of Honey and PayPal adds another significant and meaningful dimension to our two-sided platform,” concluded Schulman.
Following the acquisition, Honey will continue to operate its headquarters in Los Angeles, California. Honey Co-Founder George Ruan and Ryan Hudson will continue to the lead Honey as part of PayPal’s global consumer product and technology organization.
The transaction is expected to be accretive to PayPal’s non-GAAP earnings per share in 2021. The transaction is anticipated to close in the first quarter of 2020, pending regulatory approvals.