Visa has reached preliminary agreement with Visa Europe to amend its transaction agreement to eliminate the earn-out portion of the transaction consideration.
The move comes in response to European Commission feedback.
Visa said that instead of an earn-out, the cash consideration payable in the transaction will be increased by 1.75bn: 750m payable upon closing, and 1bn, plus 4% compound annual interest, payable on the third anniversary of closing.
The deal is subject to the negotiation of the definitive documentation of this amendment and regulatory approval. Closing of the transaction can extend beyond the end of the company’s fiscal third quarter.