SYDNEY, AUSTRALIA: In light of current macroeconomic and market conditions, Zip Co Limited (ASX: ZIP) and Sezzle Inc. (ASX:SZL) have mutually agreed to terminate their previously announced merger agreement for the proposed acquisition of Sezzle by Zip.

Zip remains firmly focused on its strategic plan and accelerating its path to profitability. Zip’s underlying business remains strong with consistent customer and transaction volume growth across core markets, and a solid pipeline of enterprise merchants joining the platform.

The US remains a core market and area of focus, and a significant opportunity for the business. Zip is well capitalised to execute on its strategy and in line with previous guidance, Zip continues to expect to deliver group profitability during FY24.

As part of the mutual termination, Sezzle will receive from Zip U.S. $11 million, to cover, among other things, Sezzle’s legal, accounting, and other costs associated with the transaction.

Chair of the Zip Board Diane Smith-Gander said: “We believe that mutually terminating the merger agreement with Sezzle at this time is in the best interests of Zip and its shareholders, and will allow Zip to focus on its strategy and core business in the current environment.”