Visa and Plaid Announce Mutual Termination of Merger Agreement
January 12 2021 - 4:11PM
Business Wire
Visa Inc. (NYSE: V) and Plaid today announced that the companies
have terminated their merger agreement and agreed with the
Department of Justice to dismiss the litigation related to the
proposed transaction. The proposed transaction was first announced
on January 13, 2020.
“We are confident we would have prevailed in court as Plaid’s
capabilities are complementary to Visa’s, not competitive,” said Al
Kelly, Chairman and CEO of Visa Inc. “We believe the combination of
Visa with Plaid would have delivered significant benefits,
including greater innovation for developers, financial institutions
and consumers. However, it has been a full year since we first
announced our intent to acquire Plaid, and protracted and complex
litigation will likely take substantial time to fully resolve.”
Mr. Kelly added, “We are focused on accelerating our business by
advancing our broader strategy and continuing to drive Visa’s three
growth pillars: consumer payments, new flows, and value added
services. We have great momentum to build upon. Over the past year,
our Visa Direct solution moved money around the world using
multiple card, ACH and RTP networks, growing nearly 70 percent. In
addition, our value added services revenue has grown in the
mid-to-high-teens. We have great respect for Plaid and the business
they have built and look forward to our continued partnership.”
“This past year saw an unprecedented uptick in demand for the
services powered by Plaid, and our priority is to support the
hundreds of millions of people who now rely on fintech,” said Zach
Perret, CEO and co-founder of Plaid. “We made great strides last
year, growing our customers by more than sixty percent and adding
hundreds of banks to our platform. While Plaid and Visa would have
been a great combination, we have decided to instead work with Visa
as an investor and partner so we can fully focus on building the
infrastructure to support fintech.“
Webcast and Conference Call Information
Visa’s executive management team will host a live audio webcast
beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today
to discuss the announcement. All interested parties are invited to
listen to the live webcast at http://investor.visa.com. A replay of
the webcast will be available for 30 days. Investor information is
also available at http://investor.visa.com.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments.
Our mission is to connect the world through the most innovative,
reliable and secure payment network - enabling individuals,
businesses and economies to thrive. Our advanced global processing
network, VisaNet, provides secure and reliable payments around the
world, and is capable of handling more than 65,000 transaction
messages a second. Our relentless focus on innovation is a catalyst
for the rapid growth of digital commerce on any device, and a
driving force behind the dream of a cashless future for everyone,
everywhere. As the world moves from analog to digital, Visa is
applying our brand, products, people, network and scale to reshape
the future of commerce. For more information, visit
usa.visa.com/about-visa.html,
usa.visa.com/visa-everywhere/blog.html and @VisaNews.
About Plaid
Plaid is a data network that powers the fintech tools millions
of people rely on to live healthier financial lives. Plaid works
with thousands of fintech companies like Venmo, SoFi, and
Betterment, several of the Fortune 500, and many of the largest
banks to make it easy for people to connect their financial
accounts to the apps and services they want to use. Plaid’s network
covers 11,000 financial institutions across the US, Canada, UK and
Europe. Headquartered in San Francisco, the company was founded in
2013 by Zach Perret and William Hockey.
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version on businesswire.com: https://www.businesswire.com/news/home/20210112006080/en/
Visa Andy Gerlt 415-805-4892 Press@visa.com
Plaid Heather Staples 510-610-9000 Press@plaid.com
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