Payment network operator Visa has agreed to acquire e-payment company CyberSource for $26 per share, or total consideration of approximately $2 billion to be paid with cash on hand. The price represents a near 34 percent premium over Mountain View-based CyberSource’s Tuesday closing price.
The deal will enable Visa to bolster online sales and offer new and enhanced online fraud prevention services to merchants, financial organizations and end consumers.
CyberSource is said to process about 25 percent of all e-commerce dollars transacted in the United States. The company serves more than 295,000 merchants through its CyberSource and Authorize.Net branded solutions, including companies like Google, Facebook and British Airways. Most of its revenues come from the United States, although Visa says this positions the company for global growth.
Visa and CyberSource have partnered since 1999, and currently collaborate on risk models built into CyberSource’s automated fraud management solutions.
CyberSource’s President and CEO, Michael Walsh, will continue to oversee CyberSource’s operations. The company’s Chairman and Founder, William S. McKiernan, will join Visa as an Executive Advisor to assist in the integration of the two businesses.
The transaction is subject to customary closing conditions and is expected to close in Visa’s fourth fiscal quarter of 2010.
This is the second significant acquisition in tech land this morning; Salesforce just announced it’s acquiring Jigsaw for $142 million in cash.
Who’s next?
Visa Inc. operates the world’s largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. We offer a range of branded payment product platforms, which our financial institution clients use to deliver credit, debit, prepaid and commercial programs to their customers. Visa’s global network, VisaNet, delivers value-added processing services, including fraud and risk...
Cybersource is a global payment gateway and merchant services provider that is focused on the active management of the payment process from payment acceptance and order screening, through reconciliation and payment security.
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