MasterCard announces agreement to acquire 92.4% of VocaLink Holdings
92.4% stake in the London-based payment services company would strengthen Mastercard's UK influence
Updated : 15:31
MasterCard Inc. has agreed to buy a 92.4% stake of VocaLink Holdings, a company which offers payment processing services for UK payment schemes, for around $920mn (£700mn).
The offer amount is adjusted for cash and some estimated liabilities
The deal is expected to be wrapped up early 2017, and it would most likely dilute earnings per share by 5%, according to Mastercard.
“We’re excited about the opportunity to play a bigger role in payments in the UK, a very strategic market for us,” said Ajay Banga, president and CEO, MasterCard.
In a press release given out on Thursday, Banga referred to VocaLink as a "unique" company.
“VocaLink is a unique company with outstanding technology, assets and people. We look forward to investing in and maximizing the technology, and embedding it in our products and solutions, both in the UK and around the world," he added.
David Yates, CEO of VocaLink, who will now become part of MasterCard's management committee, was pleased with the news.
“Today’s announcement is positive news for our partners, customers and employees,” said Yates. “We will continue to focus on ensuring that the UK systems perform seamlessly, maintaining the highest levels of quality. At the same time, we’ll invest in further innovation to power competitive payments solutions for consumers and businesses around the globe.”