Master Card To Buy A 92.4% Stake In Vocalink For $920m

MasterCard Inc said it would buy 92.4 percent stake in London-based VocaLink Holdings Ltd for about $920 million (700 million pounds) as the world’s No.2 payment network provider looks to strengthen its presence in the UK market.

Master Card To Buy A 92.4% Stake In Vocalink For $920m
Master Card To Buy A 92.4% Stake In Vocalink For $920m

VocaLink offers payment processing services for UK payment schemes.After the transaction closes, most of VocaLink’s current shareholders will together hold a 7.6 percent stake in the company for at least three years, MasterCard said.

The offer amount is adjusted for cash and some estimated liabilities. VocaLink’s existing shareholders could get an additional $220 million if certain performance targets are met, MasterCard said.

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If the deal closes early next year, it is expected to dilute earnings per share by 5 cents in 2017 and 2018, MasterCard said.VocaLink Chief Executive David Yates will join MasterCard’s management committee after the deal closes.The UK company’s shareholder Barclays Plc confirmed that it was selling a majority of its shares to MasterCard for 104 million pounds.

Other shareholders, Royal Bank of Scotland and Co-op Bank said they expected to book profits of 150 million pounds and about 25 million pounds, respectively.

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Chukwuyem Ogala is a content writer at Edliner. A multifaceted personality with a degree in Economics. He has a strong passion for Rap music and sports. A big fan of the NBA, likes Rafael Nadal and has a crush on Serena Williams. Chuks just strives to be better and wants to be heard globally.

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