Why Square Is Buying Afterpay for $29 Billion

Digital payments company Square (NYSE: SQ) announced on Aug. 1 that it intends to acquire the Australian financial-technology company Afterpay (OTC: AFTP.F) in an all-stock transaction worth about $29 billion. The deal was announced at the same time Square reported its second-quarter earnings, and Square stock jumped as much as 14% on the combined news.

However, while the market reacted positively, many investors seem to have concerns about the acquisition price. Let's see what may lie in store for these fintech darlings.

Image source: Getty Images.

Source Fool.com