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Tom Richardson

Zip, Sezzle and the elephants in the room

The market is abuzz over why Zip decided to scrap its Sezzle merger just three weeks after stating that it remained on track.

Tom RichardsonJournalist

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It won’t be easy for Zip Co to brush the mess created by its decision to seek a merger with Sezzle under the carpet.

For starters, there’s the $US11 million ($16 million) wasted that it must pay Sezzle to wriggle out of the deal, but it could have been worse given the merger agreement included a break fee up to $31.4 million in certain circumstances.

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Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com

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    Original URL: https://www.afr.com/markets/equity-markets/zip-sezzle-and-the-elephants-in-the-room-20220713-p5b18x