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Australia’s biggest tech company Afterpay (ASX:APT), is set to be taken over by US payment giant, Square. APT also released preliminary FY21 results to the market. Here’s what you need to know.

Square has offered to takeover Afterpay for $39 billion (US$29 billion), making it the biggest takeover in Australian history. The offer values APT at $126.21, which is 31% higher than its closing price on Friday 30^th July, of $96.66.

The Square – Afterpay transaction is expected to be completed by Q1 2022, subject to regulatory approval, as well as APT and Square shareholder approval.

APT shareholders are set to receive 0.375 shares in Square, for every APT share they own.

APT will delist once the acquisition is completed. APT shareholders will account for approximately 19% of Square’s share ownership.

APT reported sales rose 101% to $22.4 billion in the financial year ending 30 June 2021.

APT group revenue rose 88% to $978 million. Gross profit rose 84% to $875 million, compared to the same time last year.

APT underlying sales in the US rose 175% and UK sales rose 242%, compared to FY20.

APT shares jumped 21% after today’s takeover announcement.

APT’s share price is down 1% this year, pulling back from $160.

APT is a BUY stock for Macquarie ($130 target), Morgan Stanley and Credit Suisse ($145 target respectively). APT is a UBS SELL stock ($42 target).