Zip Co enters strategic partnership with Amazon
SYDNEY: Zip Co Limited has entered into a strategic agreement with Amazon Commercial Services Pty Limited (Amazon), wherein Zip will be available as a payment option for customers shopping on Amazon.com.au as well as Amazon’s first Australian installment payment option.
Zip CEO and Managing Director, Larry Diamond said: “We are thrilled to have secured this strategic agreement with Amazon Australia, providing customers with a more flexible way to pay. This agreement puts Zip firmly on the main stage by allowing customers shopping on Amazon.com.au touse Zip to pay at their pace. The agreement delivers a fantastic experience for customers who are looking to own the way they pay.”
The relationship with Amazon Australia continues to deliver on Zip’s strategic vision of providing customers with convenience and choice in how they choose to pay for everyday products, whilst also expanding the network of acceptance for Zip’s 1.5 million digital customers.
In connection with the strategic agreement, Zip will issue to an affiliate of Amazon warrants to acquire up to 14,615,000 ordinary shares. The exercise price for each Warrant is equal to the volume weighted average closing price of Zip’s shares on the ASX for the 20 trading days prior to October 31, 2019 ($4.70).
A portion of the Warrants (25%, or 3,653,750 ordinary shares) will vest concurrently with Zip’s entry into the strategic agreement, and the remainder of the Warrants will be subject to vesting milestones based on processed volumes.
The Warrants may be exercised any time until 7 years after the issue date , except that the unvested Warrants are subject to early expiration in certain circumstances, including in the event that the applicable vesting milestones are not met by specified dates. It is anticipated that Zip will be live on Amazon.com.au on 7 November 2019.