Visa Inc to buy startup Plaid Inc in a $5.3 billion deal

Visa Inc said on Monday it agreed to buy privately held software startup Plaid Inc in a $5.3 billion deal that will boost the payments giant’s access to the booming financial technology space.

The transaction highlights how traditional financial firms are willing to pay top dollar to acquire businesses which have established strong positions servicing the digital and cashless economy, reports Reuters.

Plaid’s technology lets people link their bank accounts to mobile apps such as Venmo, Acorns and Chime, with the San Francisco-based firm saying its systems have been used by one in four people with a U.S. bank account.

The $5.3 billion price given in Monday’s statement is double what Plaid was reportedly valued at during its last fundraising, when it took a $250 million Series C round that was announced in December 2018.

It was later revealed by Plaid that both Visa and rival Mastercard Inc were investors in that round.

“Plaid is a leader in the fast growing fintech world,” Visa Chairman and CEO Al Kelly said in Monday’s statement.

“The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers.”

Founded in 2013 and currently connecting with over 11,000 financial institutions across the United States, Canada and Europe, Plaid will be able to use the acquisition to leverage Visa’s global brand in expanding its own business, according to a source familiar with the matter.

Visa expects the deal to close in the next three to six months and benefit its adjusted earnings per share at the end of the third year.

Visa said it will fund the deal using cash on hand as well as debt that will be issued at a later date. The acquisition would not impact upon Visa’s previously announced stock buyback or dividend plans.

Avatar

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Translate this News

Join the Facebook Group

Click here to join the Facebook group of News Hour

Popular Posts

Sacred Games exposes Rajshri Deshpande nude [video]
Samsung Bangladesh announced exciting offers at Dhaka International Trade Fair 2019
Berger opens Experience Zone in Chandpur
Samsung opens first-ever flagship store in Dhaka
Kim Kardashian shrugs off critics, reveals law school progress
Anurag Kashyap shoots Kubra Saith 7 times nude and made her cry for frontal nudity scene [Video]

Advertisement

News of the Month

January 2020
S M T W T F S
« Dec    
 1234
567891011
12131415161718
19202122232425
262728293031  
Scroll Up
%d bloggers like this: