Visa agrees to buy Startup of Plaid financial technology for US $ 5.3 billion – National


Visa Inc said on Monday that it agreed to buy the private software company Plaid Inc in a $ 5.3 billion deal that will increase the giant’s access to the burgeoning financial technology space.

The transaction highlights how traditional financial firms are willing to pay a higher dollar to acquire businesses that have established solid positions to serve the digital economy without cash.

Halton police warn users of prepaid scam credit cards with altered barcodes

Plaid technology allows people to link their bank accounts with mobile applications such as Venmo, Acorns and Chime, and the San Francisco-based company says its systems have been used by one in four people with a bank account in the United States. .

The price of US $ 5.3 billion given in Monday’s statement is double what, according to reports, Plaid was valued during his last fundraiser, when he took a Series C round of US $ 250 million. announced in December 2018.

The story continues under the ad

Lost your Visa card? Some banks hold you completely responsible

Lost your Visa card? Some banks hold you completely responsible

Later, Plaid revealed that both Visa and its rival Mastercard Inc were investors in that round.

“Plaid is a world leader in fast-growing financial technology,” Visa president and CEO Al Kelly said in Monday’s statement.

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

What the dispute between the United States and Iran means for financial markets and gasoline prices in Canada

Founded in 2013 and currently connecting with more than 11,000 financial institutions in the United States, Canada and Europe, Plaid may use the acquisition to take advantage of Visa’s global brand to expand its own business, according to a source familiar with the matter.

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

4 financial resolutions to really control your money in 2020

Visa said it will finance the agreement using available cash, as well as debt that will be issued at a later date. The acquisition would not affect the repurchase plans of shares or dividends previously announced by Visa.

Visa and Plaid, respectively, used Lazard and Goldman Sachs as their financial advisors.

The story continues under the ad



Please enter your comment!
Please enter your name here