Visa Inc to acquire Visa Europe

Visa Inc and Visa Europe Ltd have announced a definitive agreement for Visa Inc to acquire Visa Europe, creating a single global company. The transaction consists of upfront consideration of €16.5 billion with the potential for an additional earn-out of up to €4.7 billion payable following the fourth anniversary of closing, for a total value of up to €21.2 billion. The upfront consideration comprises €11.5 billion of cash and preferred stock convertible into Visa Inc class A common stock valued at €5 billion. Both companies’ boards were unanimous in their support of the transaction. The transaction is subject to regulatory approvals and is expected to close in Visa Inc.’s fiscal third quarter of 2016.
As a result of the combination, European clients will have greater access to Visa Inc’s scale and resources and global clients will have a more seamless experience. Additionally, European clients will benefit from direct access to Visa Inc’s investments in innovative technology and differentiated products and services.