Visa raises Earthport offer to £247m, tops Mastercard bid

Marco Green
February 11, 2019

The battle for payments minnow Earthport has ramped up again after Visa raised its earlier offer so that it trumped rival Mastercard's bid.

The new figure is 12% above Mastercard's offer and 23% higher than the original Visa bid.

Earthport's interim chair Sunil Sabharwal said: "The board of Earthport is pleased to recommend Bidco's (Visa's) cash offer for Earthport which is at a 12% premium to the Mastercard proposal".

Shares in Earthport jumped by nearly 9% to 42p after the news this morning, while Mastercard was prompted to issue a short statement saying: "Mastercard is considering its options and urges Earthport shareholders to take no action in response to the announcement by Visa".

Both Mastercard and Visa have cited the same reason for their interest in Earthport - the deal would enable it to expand its cross-border network service.

It is cheaper than traditional payment systems and is an area that is becoming increasingly popular for deal making down in large to the technological changes in the way consumers pay.

Earthport, whose shares fell 28 percent previous year until the first bid, offers a lower-cost option to traditional payments systems by allowing banks and money transfer firms to have a single relationship instead of multiple ties with various payments channels around the world.

Earthport allows for banks and money transfer firms to have a single relationship rather than multiple ties with various payment companies around the world.

Other reports by Click Lancashire

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