The credit card giant VISA will be acquiring Earthport after closing a £198 million deal. The information was released by VISA a few days ago in a statement. Earthport is a British firm that facilitates international transactions for banks and businesses. The company is also a partner of Ripple, one of the most popular companies in the crypto space.
Ripple’s Partner Earthport Acquired by VISA
VISA International Service Association, a unit of VISA, offered 30 pence for each of the shares of the company. However, each of its shares had a price close to 7.45 on Monday according to Reuters.
The company seems to agree with the buying proposal and recommended to its shareholders to take the cash offered by the company. During this year, the company’s shares fell 28 percent since the company increased its expenses and registered important losses. After the announcement made by the company, the shares grew up to 30 pence per each Earthport share.
The company allows firms and other institutions to have a low-cost alternative system for payments. It allows money transfer companies to have just a single connection rather than multiple payments channels.
The official statement read as follows:
“The boards of Bidco and Earthport are pleased to announce that they have reached agreement on the terms of a recommended all-cash offer for the entire issued and to be issued ordinary share capital of Earthport by Bidco, a wholly-owned direct subsidiary of Visa.”
It is important for VISA to remain competitive in a business that is receiving more and more competitors from all over the world. There are several startups that are starting to take part of VISA’s market and the credit card giant does not want to lose the opportunity to keep being a market leader.
As Reuters reported, Visa was advised by Goldman Sachs while Earthport’s Earthport receive advises from Rothschild & Co.
The firm is a partner of Ripple and has been working on an API that could help to make bank connections with Ripple’s network. This was specifically designed for small institutions that might be able to reduce costs and enhance their operations.
Ripple has currently partnered with more than 150 different financial firms worldwide, showing that the company is offering good services to companies in different countries.
Ripple provides services such as xRapid that allow firms to reduce transaction costs and improve their efficiency. xRapid allows interested customers to use the XRP digital asset to enhance even further the services they use. However, at the time of writing, there are no companies working with XRP.
According to reports from Ripple, xRapid helps companies reduce costs and transaction times between 40% and 70%.
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