Visa has agreed a £124 million deal to acquire Fraedom, a Software-as-a-Service technology firm that provides payments solutions for financial institutions and their customers.

The two companies have been partners for almost 10 years, with its technology used for Visa’s IntelliLink Spend Management platform for commercial and small business clients. The acquisition has been completed to strengthen and expand Visa’s business suite of solutions.

Fraedom offers transaction management products and services to financial institutions, payment networks, processors, governments and technology companies, including expense management and accounts payable solutions.

Vicky Bindra, global head of products and solutions at Visa, commented: “Increasingly, businesses are replacing inefficient paper-based payment systems with digital tools. This strategic acquisition allows Visa to offer a more comprehensive business solution to our corporate clients that is innovative, global, highly configurable and intuitive for their employees.”

Kyle Ferguson, CEO of Fraedom, added: “We couldn’t be more excited to join the Visa family. The combination of Visa’s leadership, reach and deep knowledge of digital payments, coupled with our expertise in the B2B market for our growing customer base, will allow us to better service businesses around the world with fast, secure and robust commercial payments solutions.”

The transaction, which is subject to the customary closing conditions, is expected to close in Q1 2018.

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