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Visa to buy UK-based Earthport for USD 250.6 mln

Friday 28 December 2018 | 01:21 PM CET

Visa is paying USD 250.6 million to buy Earthport, a British company that facilitates international transactions for banks and businesses.

Visa International Service Association, a unit of Visa, has offered 30 pence for each Earthport share, a price that is four times the stock's on December 24 closing price of 7.45 pence.

Earthport shares surged in early trading on December 27 and matched the offer price.

Earthport's shares, listed on the London Stock Exchange's secondary market, have fallen more than 28% this year amid growing losses and expenses, forcing the company to say last month that fundamental change was required in its strategy.

Earthport says it offers an alternative to traditional payments systems by allowing banks and money transfer firms to have a single relationship instead of multiple ties with various payments channels around the world.

For Visa, cross-border payments, or transactions that involve parties in two or more countries, represents a growing business. The volume of such payments rose 10% in the 2018 fiscal year, Visa said in October 2018.

Earthport, which counts Bank of America Merrill Lynch and Japan Post Bank among its clients, said Visa's offer was a revised proposal that followed an indicative offer from the US company in November 2018.

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