Affirm, the ‘buy now, pay later’ service which recently filed to go public, has made a major acquisition just on the cusp of its public offering, announcing that it’s reached a deal to acquire PayBright, a Canadian ‘buy now, pay later’ service just like Affirm, for a price of CAD $340 million ($264 million) in a mix of cash and equity.

The acquisition marks a major win for PayBright, which is backed by some $60 million in venture funding from investors including the Canadian Business Growth Fund and the Canadian finance company goeasy, which invested $34.3 million in PayBright last September and has announced that it’ll see a windfall of $60 million from Affirm’s acquisition.

PayBright’s acquisition gives Affirm leeway into the Canadian consumer lending market, which is a big market but one that Affirm has not gotten into before now. Just on the verge of its IPO which is expected to happen before this year’s end, Affirm getting into the Canadian market could boost investor sentiment for the company.

Affirm as a company is doing good and growing steadily, reporting $509.5 million in revenue and a net loss of $112.6 million in its most recent fiscal year. In the year before that, the company reported losses of $120.5 million on $264.4 million in revenue.

Affirm says it expects its acquisition of PayBright to be completed in the first quarter of next year.

Photo: Affirm Founder and CEO Max Levchin by World Economic Forum is licensed under CC BY-NC-SA 2.0

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