Financial giant Visa (NYSE: V) announced on Thursday that it has entered into a definitive agreement for the acquisition of Currencycloud, a UK-based business-to-business Payments startup.
Visa is an existing partner and investor in Currencycloud, which is valued at £700 million, inclusive of cash and retention incentives. But, the financial consideration of the deal will be reduced by the Currencycloud outstanding equity Visa is already holding.
“The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy to facilitate global money movement,” said Colleen Ostrowski, Visa’s Global Treasurer.
Payments Services Are in Demand
Headquartered in London, Currencycloud offers Cloud -based APIs to banks and financial services providers, enabling them to offer currency exchange services. It also provides real-time notifications on foreign exchange transactions, multi-currency wallets, and virtual account management.
According to the company, it has a reach across 180 countries and supports nearly 500 banking and technology clients.
The acquisition came when the demand for cross-border transactions is skyrocketing around the world. The official announcement confirmed that Visa will strengthen its existing foreign exchange capabilities.
“With our acquisition of Currencycloud, we can support our clients and partners to further reduce the pain points of cross-border payments and develop great user experiences for their customers,” Ostrowski added.
Despite the acquisition, Currencycloud will continue to operate from London and will be led by its existing management team.
Mike Laven, Chief Executive Officer at Currencycloud, said: “The combination of Currencycloud’s fintech expertise and Visa’s network will enable us to deliver greater customer value to the businesses moving money across borders.”
Though Visa’s high-profile Plaid acquisition failed, the credit card giant bought the Swedish open banking platform, Tink last month for $2.15 billion.
