Enhancing Choice, Driving Innovation Across All
Payment Types and Payment Flows
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, join the discussion on the Beyond the Transaction
Blog and subscribe for the latest news on the Engagement
Bureau.
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/
MasterCard Investor Relations:Barbara Gasper,
+1-914-249-4565investor.relations@mastercard.comorMasterCard
Communications:Seth Eisen,
+1-914-249-3153seth.eisen@mastercard.comorRose Beaumont, +44 077
25219 970rose.beaumont@mastercard.comVocaLink Media
Relations:David Daniel, +44 078 67676
078david.daniel@vocalink.com
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