The IOUpay Ltd (ASX: IOU) share price has struggled this past week.
Shares in the buy now, pay later (BNPL) company have fallen around 7% in the past 7 days.
Let’s take a look at what’s been dragging the IOUpay share price lower this past week.
Acquistion sinks IOUpay share price
It seems investors have lost interest in IOUpay.
Following a trading halt, the digital payment company made headlines late last week after announcing an acquisition.
IOUpay acquired a 42% stake in Malaysian finance company I.Destinasi Sdn Bhd (IDSB) for AU$41.3 million, via 2 tranches.
According to IOUpay, the acquisition was completed with the intention of using IDSB as a complementary business.
The BNPL player highlighted collaborative opportunities of “cross-selling” between IOUpay’s short-term offerings and IDSB’s long-term products.
In addition, IOUpay noted that IDSB owns a key credit licence (AG Code2) for the region.
The company also highlighted the purchase price could be decreased if IDSB’s profit before tax is less than AU$9.8 million for FY21.
Shares in IOUpay initially rocketed more than 22% after the company announced the news, opening at 36 cents.
However, in the past week, investors seem to have lost interest in the BNPL player.
As a result, shares in IOUpay have drifted and are currently trading around 28.5 cents.
More on IOUpay
IOUpay operates in the BNPL sector, providing mobile banking and payment services to people in southeast Asia. The company also services leading banks in Malaysia.
IOUpay also works with telecommunication network providers to supply mobile OTT (over the top) services that leverage their subscriber base.
Since the start of the year, the IOUpay share price has soared more than 69%.
Indeed, shares in the BNPL player rocketed to record highs earlier this year after the company entered into a merchant referral agreement with EasyStore Commerce.
Despite releasing further merchant agreements throughout the year, the IOUpay share price has given back much of its gains since February.
At the time of writing, shares in IOUpay are trading 1.72% lower for the day at 28.5 cents.