SYDNEY, AAP – Investors elevated the Australian share market to record levels in the wake of a mega merger deal for Afterpay.

Information technology shares closed 6.54 per cent higher after US payments provider Square agreed to an Afterpay deal worth $39 billion.

Shares in the buy now, pay later provider closed higher by 18.77 per cent to $114.80.

All share categories were up and the benchmark S&P/ASX200 index closed higher by 98.8 points, or 1.34 per cent, to 7491.4.

The All Ordinaries closed up 96.3 points, or 1.26 per cent, to 7760.5.

The Australian dollar was buying 73.48 US cents at 1624 AEST, lower from 73.80 US cents at Friday’s close.