Video source: YouTube, Cointelegraph News
Visa Inc (NYSE: Chart V - $221.04 1.55 (0.696%) ) has agreed to acquire Currencycloud, a UK-based fintech platform, for 700 million pounds ($962 million).
The deal announced Thursday by the payments giant builds on an existing strategic partnership formed between the two companies in 2019, a press release noted.
Visa has also been a Currencycloud shareholder since 2020. The financial consideration for the deal will be reduced by the equity that the card network company already owns in the startup.
Under the deal, Currencycloud will continue to operate from its headquarters in London and keep its current management team.
Founded in 2012, Currencycloud sells software for banks and fintech firms to process cross-border payments. The company has 500 banking and technology clients in more than 180 counties that use its platform to power multicurrency wallets, currency exchange services and account management.
Since its launch, the company has raised more than $160 million in funding from investors including Visa, Alphabet Inc’s venture capital arm GV, Japanese financial conglomerate SBI Holdings and French banking firm BNP Paribas.
TechCrunch noted that the move will give Visa the ability to use Currencycloud's technology to bolster its own currency exchange services, as well as build new offerings.
Mike Laven, Currencycloud’s chief executive officer, said, “Re-imagining how money flows around the global economy just got more exciting as we join the Visa family. The combination of Currencycloud’s fintech expertise and Visa’s network will enable us to deliver greater customer value to the businesses moving money across borders.”
“With our acquisition of Currencycloud, we can support our clients and partners to further reduce the pain points of cross-border payments and develop great user experiences for their customers,” Colleen Ostrowski, Visa’s global treasurer, said in a statement.
The deal marks Visa’s second major fintech acquisition of 2021. Last month, the card network company agreed to buy Swedish firm Tink for $2.1 billion after its attempt to acquire Plaid was thwarted by US regulators.
Source: Equities News