For four times the company’s stock closing price, too.
Visa has bought international payments company Earthport for £198 million, Reuters reported on Thursday.
Earthport is an Authorised Payments Institution that enables businesses and financial institutions to process cross-border transactions at a low cost via a global payment network, settling business exchanges through local clearing to banks all over the world, according to its website.
According to the Reuters report, Visa offered 30 pence for each Earthport share – a striking four times the company’s stock closing price.
The British firm reportedly described the offer as “fair and reasonable,” and that it would recommend its shareholders to accept Visa’s all-cash offer, the report states.
Based in London, Earthport currently has bank partners in “over 87 countries,” including Bank of America, Hyperwallet, Transferwise, and others that are currently partnered with Ripple.
The firm itself has also teamed up with Ripple, announcing in 2015 that it would provide “full connectivity” to Ripple instances and market makers through a “Distributed Ledger Hub.”
Earthport has been pushing to expand its global network reach recently. This year, it expanded its reach by over 30%, establishing connections with “both emerging and developed markets.” Last month, it was named ‘Best Cross-Border Payments Solution’ at this year’s Payments Awards – an achievement CEO Amanda Mesler hopes to build on by maximizing the company’s global reach while setting “new levels in transparency and predictability.”
Visa’s acquisition of the UK-based firm demonstrates the company’s increasing interest in cross-border transactions. Last month, it partnered with money transfer company Moneygram to allow users to transfer their funds internationally through its real-time payments platform, Visa Direct (source: Banking Tech).