Payments technology Square has made its first public acquisition after its widely publicized initial public offering in November.
The name of the company involved was undisclosed. An SEC filing by Square said it was for “software technology related to network connections,” an issue of particular importance because Square must connect its payment system to payment networks like Visa or American Express.
Sources familiar with the matter said the acquisition was not of a company itself but rather just the technology.
A spokesperson for Square confirmed the transaction but declined to disclose further details.
The SEC filing indicates that acquisition involved 667,133 Square shares. At Friday’s stock value of $8.77 per share, the transaction would amount to roughly $5.8 million. Of course, there could be additional cash as part of the deal. A source close to the company said that the acquisition’s cost wasn’t material.
Square, founded and led by Twitter CEO Jack Dorsey, has made a number of acquisitions in the past including restaurant delivery services Caviar and Fastbite. It also bought payments processing company Kili Technology in 2015.
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The acquisition comes after Square’s shares have taken a big hit. In the past two weeks, the company’s stock has fallen below its original IPO price of $9 per share. Since the beginning of the year, Square’s stock price has dropped 33% from around $13 per share.
