MasterCard has agreed to acquire 92.4% stake in VocaLink, a London-based payments technology firm, in a transaction valued at approximately £700m (nearly $920m).
VocaLink provides mobile payments products and services such as ZAPP, and licenses its software and provides services to support ACH activities in Sweden, Singapore, Thailand and the US.
Under the terms of the definitive agreement, VocaLink’s existing shareholders have the option for an earn-out of up to an additional £169m (about $220m), if performance targets are met.
As per the agreement, a majority of VocaLink’s shareholders will retain 7.6% stake for at least three years.
MasterCard believes that the acquisition will strengthen its efforts to become an active participant in all types of electronic payments and payment flows and to improve its services for the benefit of customers and partners.
Furthermore, the acquisition is expected to enable MasterCard to play a more strategic role in the UK payments ecosystem, while bringing the innovation and knowhow from across the globe back to VocaLink’s home market.
Following the acquisition, VocaLink CEO David Yates will join the MasterCard management committee.
MasterCard president and CEO Ajay Banga said: “We’re excited about the opportunity to play a bigger role in payments in the UK, a very strategic market for us.
“VocaLink is a unique company with outstanding technology, assets and people. We look forward to investing in and maximizing the technology, and embedding it in our products and solutions, both in the UK and around the world.”
The transaction is expected to conclude in early 2017, subject to regulatory approval and other customary closing conditions.