Visa to acquire CyberSource for $2 billion
22 April 2010
Operator of the world's largest electronic payments network Visa Inc. has entered into a deal to acquire CyberSource Corporation, a leading online payment services provider, for approximately $2 billion in cash, in order to strengthen the company's online presence and take on rivals such as PayPal, ClickandBuy and others.
San Francisco-based Visa's offer price of $26 per share for all of the outstanding shares of CyberSource or $2 billion is its largest acquisition so far since the company went public in 2008.
The acquisition is expected to accelerate Visa's e-commerce growth by expanding online payment, prevention of fraud, and offer advanced security solutions to merchants, financial institutions and consumers.
Visa operates the world's largest digital payment system (ahead of MasterCard and American Express) in over 200 countries with some 1.7 billion plastic cards in circulation. It has one of the world's most advanced processing networks VisaNet which is capable of performing over 10,000 transactions per second (primarily authorisation, clearing and settlement) on behalf of financial institutions and merchants worldwide.
The company's payment brands include Visa, Visa Electron, Plus and Interlink. Visa's 2009 revenue was $6.9 billion.
Mountain View, California-based CyberSource enables electronic payment processing for web, call centre and point-of-sale transactions, and also offers risk management and payment security solutions for merchants.