Enhancing Choice, Driving Innovation Across All Payment Types and
Payment Flows
PURCHASE, N.Y.--(BUSINESS WIRE)--
MasterCard Incorporated (NYSE:MA) today announced that it has entered
into a definitive agreement to acquire 92.4 percent of VocaLink Holdings
Limited for about £700 million (approximately US$920 million), after
adjusting for cash and certain other estimated liabilities. VocaLink’s
existing shareholders have the potential for an earn-out of up to an
additional £169 million (approximately US$220 million), if performance
targets are met. This transaction is subject to regulatory approval and
other customary closing conditions.
Under the agreement, a majority of VocaLink’s shareholders will retain
7.6 percent ownership for at least three years.
Based in London, VocaLink operates key payments technology platforms on
behalf of UK payment schemes, including:
-
BACS – the Automated Clearing House (ACH) enabling direct credit and
direct debit payments between bank accounts
-
Faster Payments – the real-time account-to-account service enabling
payments via mobile, internet and telephone
-
LINK – the UK ATM network
In addition, VocaLink offers innovative products with global potential,
including ZAPP, a mobile payments app that leverages Fast ACH
technology, and licenses its software and provides services to support
ACH activities in Sweden, Singapore, Thailand and the United States. In
2015, the company reported revenues of £182 million as it processed more
than 11 billion transactions.
This acquisition accelerates MasterCard’s efforts to be an active
participant in all types of electronic payments and payment flows and to
enhance its services for the benefit of customers and partners. It will
allow 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. The result will be even more
choice in how consumers, merchants and governments make and receive
payments.
“We’re excited about the opportunity to play a bigger role in payments
in the UK, a very strategic market for us,” said Ajay Banga, president
and CEO, MasterCard. “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.”
VocaLink supports and expands the products and services MasterCard
offers issuers, governments and merchants, giving them even more
relevance and touchpoints with the end consumer. It will be the first
true combination of the traditional person-to-merchant cards business
with a clearing business, which when fully developed, presents an
additional opportunity to make a deeper and sustained shift from the use
of cash and checks in business, government and personal payments.
“Today’s announcement is positive news for our partners, customers and
employees,” said David Yates, CEO, VocaLink. “We will continue to focus
on ensuring that the UK systems perform seamlessly, maintaining the
highest levels of quality. At the same time, we’ll invest in further
innovation to power competitive payments solutions for consumers and
businesses around the globe.”
Upon closing of the transaction, Yates will join the MasterCard
management committee.
MasterCard expects the transaction to be dilutive for up to 24 months
after the deal closes. If the deal closes in early 2017, the company
currently estimates the transaction would be 5 cents dilutive to each of
2017 and 2018 earnings per share. The dilution would be due to continued
levels of new product investment, transaction and integration costs, as
well as amortization of intangibles.
At 9:00 a.m. ET today, the company will host a conference call to
discuss the transaction. The dial-in information for this call is
866-393-4306 (within the U.S.) and 617-826-1698 (outside the U.S.) and
the passcode is 54162246. A replay of the call will be available for one
month and can be accessed by dialing 855-859-2056 (within the U.S.) and
404-537-3406 (outside the U.S.) and using passcode 54162246.
The live call and the replay can also be accessed through the Investor
Relations section of the company’s website at www.mastercard.com/investor.
Presentation slides used on this call are also available on the website.
About MasterCard Incorporated
MasterCard Incorporated (NYSE: MA), www.mastercard.com,
is a technology company in the global payments industry. We operate the
world’s fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in more
than 210 countries and territories. MasterCard products and solutions
make everyday commerce activities – such as shopping, traveling, running
a business and managing finances – easier, more secure and more
efficient for everyone. Follow us on Twitter @MasterCardNews,
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About VocaLink
We’re VocaLink. A global payments partner to banks, corporates and
governments. We design, build and operate world-class payment systems.
We believe that sustainable economies are powered by easy access to and
movement of money. Our award-winning platforms and payment industry
expertise make it easier for people to make payments confidently and
securely. Last year we processed over 11 billion transactions with a
value of £6 trillion. In the UK, we process over 90% of salaries, more
than 70% of household bills and almost all state benefits. Every
business and person in the UK benefits from our technology.
In the UK, our high availability, resilient payment systems power the
Faster Payments Service on behalf of the Faster Payments Scheme, the
Account Switching platform, Bacs and the Direct Debit Scheme. We also
connect the world’s busiest network of over 70,000 ATMs through the LINK
scheme.
Our proven capability of implementing real-time payment systems in the
UK has led to the development of immediate payment solutions for other
countries such as Singapore and the United States. Our vision is to be
the leading real-time payment infrastructure provider globally, creating
a positive impact on society by shaping the payments landscape worldwide.
Our approach to designing world-class payment systems is driven by the
voice of our customers. Their needs are at the centre of everything we
do and we strive to deliver a flawless experience every single time.
We’re VocaLink. Powering economies, empowering people.
For payment news and insight from VocaLink visit CONNECT - http://connect.vocalink.com/
Forward-Looking Statements:
This press release contains forward-looking statements pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical facts may be
forward-looking statements. When used in this press release, the words
“believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and
similar words are intended to identify forward-looking statements.
Examples of forward-looking statements include, but are not limited to,
statements that relate to MasterCard’s future prospects, developments
and business strategies, as well as MasterCard’s acquisition and
operation of VocaLink’s business. We caution you to not place undue
reliance on these forward-looking statements, as they speak only as of
the date they are made. Except for the company’s ongoing obligations
under the U.S. federal securities laws, the company does not intend to
update or otherwise revise the forward-looking information to reflect
actual results of operations, changes in financial condition, changes in
estimates, expectations or assumptions, changes in general economic or
industry conditions or other circumstances arising and/or existing since
the preparation of this press release or to reflect the occurrence of
any unanticipated events.
Many factors and uncertainties relating to the proposed transaction, our
operations and our business environment, all of which are difficult to
predict and many of which are outside of our control, influence whether
any forward-looking statements can or will be achieved. Any one of these
factors could cause our actual results or the impact of the acquisition
to differ materially from those expressed or implied in writing in any
forward-looking statements made by MasterCard or on its behalf. Such
factors related to the completion and impact of the acquisition include,
but are not limited to, the following:
-
whether all necessary conditions will be met, including regulatory
approval, and
-
whether the transaction will close on agreed terms and in a timely
manner.
For additional information on other factors related to MasterCard’s
overall business that could cause MasterCard’s actual results to differ
materially from expected results, please see the company’s filings with
the Securities and Exchange Commission, including the company’s Annual
Report on Form 10-K for the year ended December 31, 2015 and any
subsequent reports on Forms 10-Q and 8-K.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160721005620/en/
Source: MasterCard Investor Relations