Visa US and Europe join hands in £15bn deal

Payments technology group Visa has struck a deal to acquire Visa Europe in a deal worth as much as €21.2bn (£15.1bn).

In a statement released on Monday, the New York-listed company said the deal will see it pay €16.5bn upfront, with an additional €4.7bn to be paid following the fourth anniversary of the completion of the acquisition.

The deal will bring the two firms back together after eight years, when the European business split from its US parent ahead of the latter’s initial public offering.

“This transaction is beneficial for financial institutions, acquirers, merchants, cardholders, and other partners, as well as for our employees and shareholders,” said group chief executive Charlie Scharf.

According to its annual report, Visa Europe managed over 500m accounts and processed over 16bn transactions last year and analysts at Citigroup believe the merger could boost Visa’s earnings by as much as 5%.

Meanwhile, the group posted a 41% year-on-year increase in fourth quarter profit to $1.51bn, as the $283m it booked in charge litigation expenses in the previous year did not recur.

However, adjusted profit excluding one off items missed expectations, as they came in at 62 cents a share, slightly below consensus of 63 cents a share.