Visa Acquires UK Cross-Border Payment Facilitator Earthport December 29, 2018 December 29, 2018 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsDecember 29, 2018 by Kelly Cromley

Visa Acquires UK Cross-Border Payment Facilitator Earthport

Reuters reported that Visa Inc (V.N) is paying £198 million ($250.6 million) to purchase Earthport Plc (EPO.L), a British company that facilitates international transactions for banks and companies, said the US payment group on Thursday.

Visa International Service Association, a Visa unit, offered 30 pence per share of Earthport, a price four times the Monday closing price of 7.45 pence. Earthport shares increased in early Thursday’s trade and corresponded to the offer price.

The London-based company said that Visa’s proposal was “fair and reasonable” and recommended that its shareholders accept the all-cash offer.

The shares of Earthport, listed on the secondary market of the London Stock Exchange, have fallen by more than 28% this year in the midst of increasing losses and expenditure, forcing the company to state last month that “fundamental” change was required in its strategy.

Earthport says it offers a cheaper alternative to traditional payment systems by allowing banks and money transfer companies to have a single relationship instead of multiple links with different payment channels worldwide.

A growing business for Visas is cross-border payments or transactions involving parties in two or more countries. In the financial year 2018, Visa said in October, the volume of such payments increased by 10%.

Earthport, which has Bank of America Merrill Lynch and Japan Post Bank as its clients, said Visa’s offer was a revised proposal following last month’s indicative offer from the US company. Rothschild & Co advised Earthport on the deal while Visa was advised by Goldman Sachs.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.