The deal will create an online payments powerhouse and help accelerate Afterpay's growth in the key United States market as well as globally, the companies said on Monday.

Afterpay's board has unanimously recommended the deal to its shareholders, the company said in the joint statement.

The payments firm, led by Twitter boss Jack Dorsey, posted total net revenue of $4.68 billion for the quarter ended in June, compared to $1.92 billion last year.