Visa Inc. announced in a press release today that it is acquiring privately held Visa Europe Ltd. for up to 23.4 billion dollars,depending on how many benchmarks are achieved.The deal will add to Visa Inc. about 3,000 European issuers and more than 500 million accounts that pay more than 1.5 trillion euros.The transaction reunites the two companies that had been one until 2004.Subject to regulatory approval,the cash and stock deal is expected to close in Visa's fiscal third quarter of 2016.
The move will result in a more seamless experience for Visa's global customers,with those in Europe getting access to the innovative technology,products and services of Visa Inc.European transactions are still 37% cash or check,so Visa Inc. will be able to grow substantially there.*
Visa Inc. is a global payments technology company connecting consumers,businesses,financial institutions and governments in more than 200 countries and territories to fast,secure and reliable electronic payments,Visa Inc. said.Visa Europe is also a payments technology company,but is owned and operated by member banks and other payment services in 38 countries,rather than shareholders.It services the more than 500 million cardholders in Europe.Benefits from revenue synergies,cost savings and increased repurchases of Class A common stock will begin to accrue in fiscal full-year 2017,Visa Inc. projected.*
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