Visa set to acquire Earthport for £198m

CREDIT CARD giant Visa is to acquire Earthport, a cross-border payment services provider to banks and businesses, in a £198m deal.

The deal, for 30p per share, represents a 250 per cent premium to Earthport’s six-month average stock price.

Earthport’s board is recommending that shareholders vote in favour of the deal.

Over 17 per cent of Earthport investors – including Oppenheimer and OFI Global Institutional – have already committed to rubber stamping the takeover.

Sunil Sabharwal, chairman of Earthport, said: “The Earthport board believes the offer by Bidco represents an opportunity for shareholders to realise an immediate and attractive cash value in Earthport today.

“Visa shares our vision of growth and expansion for Earthport and, as such, we believe it is a suitable and appropriate partner for our employees, partners, customers and other stakeholders.”

The deal comes after a difficult year for Earthport in which it lost a major customer, saw reduced transaction volumes and underwent a management shake-up.

Amanda Mesler was appointed chief executive in July and set about addressing the firm’s issues.

She said: “My focus, following a full strategic review, has been to rapidly implement a transformational growth strategy.”