Ann: ZIP Announces Acquisition of Sezzle, page-85

Lets have a look at that Zip is paying $490 million of shareholder funds for.

Sezzle transaction income $98 million less processing costs of 43 million resulting in nett income of $55 million

Bad debts 53 million or 97 percent of income .

If we add in the 16 million collected from reactivation fees from customers who have already defaulted the bad debt ratio drops to 74 per cent of income.

So net recoverable income is $19 million but in order to generate that income they spent almost 90 million in operating expenses.

In other words they are spending circa $5 to make a $1

GMV is growing but losses are growing at an even greater pace so what is Zip buying.

It seems they are paying $490 million for $19 million of revenue if synergies were able to wipe out the entire operating expenses of Sezzle. but we know that wont be possible but say they wipe out 75 percent they are still paying $490 million for business that will not generate any profits.

It looks like at todays date 12 times book value but as Sezzle losses increase more like 25 times book value, which is ridiculous.