Visa ups Earthport bid in Mastercard tussle
Written by Hannah McGrath
Visa has ramped up its bidding war with Mastercard by offering around £247 million to takeover payment company Earthport.
The move to outbid its payments rival for the company comes after Mastercard’s subsidiary Bidco dramatically stepped in to gazump Visa’s bid with a £233 million cash offer late last month, prompting Earthport’s directors to call off a shareholder meeting scheduled to discuss Visa’s offer.
In response, Visa has this morning countered with an offer of 37p in cash per share for Earthport, equivalent to a 23 per cent premium of its initial bid of £198 million, and 12 per cent higher than Mastercard’s most recent offer.
Reuters news reported that Earthport has now recommended that shareholders accept the increased offer from Visa.
The companies are locked in a battle for Earthport’s payments technology, which would enable the new owner to expand their cross-border payments processing network.
Mastercard has urged Earthport shareholders to hold off on approving the Visa offer, Reuters reported.