Visa To Acquire Visa Europe For $18 Billion

Visa Europe

Visa on Monday said it would acquire former subsidiary Visa Europe for 16.5 billion euros ($18.19 billion). The deal could add an additional 4.7 billion euros.

The upfront payment includes 11.5 billion euros in cash and preferred stock convertible into Visa Inc class A common stock valued at 5 billion euros.

Visa and Visa Europe, a cooperative of European banks with over 500 million cards, were part of a global bank-owned network until 2007. Most united merged to form Visa, while Vias Europe remained its own entity.

Visa is hoping to create more scale which will allow it to better compete with MasterCard

The company released financial’s on Monday and it expected to issue a $5 billion share buyback program.

The company’s net income jumped to $1.51 billion, or $0.62 per diluted class A common share, in the quarter ended September 30.

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Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies.