Long rumored within the industry, it appears the acquisition of Visa Europe by Visa Inc. is coming to fruition with a price tag of approximately €21.2 ($23.3) billion. The transaction reportedly consists of upfront consideration of €16.5 ($18.14) billion in cash and stock with the potential for an additional earn-out of up to €4.7 ($5.17) billion payable following the fourth anniversary of closing of which European banks are set to receive the windfall.
Commenting on the deal, Charles Scharf, chief executive officer at Visa Inc. said, “We are very excited about unifying Visa into a single global company with unmatched scale, technology and services.
“This transaction is beneficial for financial institutions, acquirers, merchants, cardholders, and other partners, as well as for our employees and shareholders.”
With disruption occurring across the payments industry, a unified Visa will be better positioned to provide the relevant technologies and products to the industry in Europe and around the world.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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