Buy now, pay later platform Zip Co (ASX:Z1P) is expanding its product offering from consumers to business.

And to fast-track the process, it announced the acquisition this morning of Spotcap ANZ, the Australian division of Berlin-based fintech lender Spotcap Global.

Zip says it will acquire the Spotcap business for a total consideration of $8.825m. The deal will be funded via the issuance of new Z1P stock, “subject to an agreed level of networking capital”.

Shares in Zip Co were up just over 3 per cent in morning trade at around $4.

New markets

Zip Co’s acquisition comes amid the usual round of rampant activity in the high-growth BNPL sector.

Shares in market-leader Afterpay (ASX:APT) have pushed to new record highs above $30, while US-based Sezzle (ASX:SZL) recently launched in the Australian market.

In addition, Australian lender Latitude Financial this week announced a new BNPL product offered in conjunction with national retailer Harvey Norman (ASX:HVN).

With its latest acquisition, Zip Co says it wants to fast-track its new business offering, Zip Biz, by on-boarding Spotcap’s IP in the commercial lending space.

Spotcap has been active in the Australian market since 2015, and has loaned over $130m to small & medium enterprises (SMEs) in the Australian market.

“The strategic acquisition of Spotcap will fast-track the delivery of this product using a proven origination platform that is live in the Australian and New Zealand markets,” Zip Co CEO Larry Diamond said.

The company said that subject to agreed conditions, it hopes to finalise the transaction by the end of November.

In other ASX tech news today:

Internet safety platform Family Insights Group (ASX:FAM) announced the receipt of a tax refund of $846,972, in connection with the ATO’s Research and Development Tax Incentive Scheme. The funds will be used to “boost cash reserves and support the development, commercialisation and marketing” of Family Insight products. Shares in FAM were unchanged at 8c.