Visa, the payments company, is now going to acquire the UK based Earthport, which facilitates the international transactions for the companies and banks.
According to the report, Visa International Service Association is by paying $250.6 Million to acquire Earthport. The stock deal, in which the Visa unit offered 30 pence for each Earthport shares, gives the UK payments company a value that is much more four times the stock closing price Monday. Earthport, according to the report said that the offer from the Visa was “reasonable and fair” and that it will recommend shareholders vote in favor of the deal.
Earthport claims its service provide the banks and money transfer firms a lower cost method for the international transactions, with the banks and money transfer firms having to deal with one company instead of having a several just within the payment channel. The company stock has been under pressure this year as according to the report the shares has been dipped to more than 30% due to the losses and expenses that are growing on a daily basis.
Earthport was established in the year 1997 to streamline the movement of money across the borders with the help of a single API to clear and settle funds locally with its banking partners. Its global payments networks include the banks in more than 90 countries with the clients include the Hyperwallet, Bank of America, Payoneer, and Transferwise.
Earthport has also partnered with the Ripple in the year 2015 to provide the real-time payments capabilities for its banking partners with the help of a distributed ledger technology. In the October, Earthport revealed that BNP Paribas came on Board as a customer, with the payments company providing with an Automated Clearing House Cross border payment services for the BNP.
Visa had made an offer for the Earthport in the month of November, and the deal was the result of the Visa revising its bid after an indicative offer from an unnamed US company in November, according to the report.
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