Summary
Visa Inc. announced on April 21, 2010, that it has entered into a definitive agreement to acquire CyberSource Corporation for approximately $2.0 billion in cash. This strategic acquisition aims to enhance Visa's capabilities in electronic payment, risk management, and payment security solutions for online merchants. The transaction is structured as a merger where Visa's newly formed subsidiary, Market St. Corp., will acquire CyberSource. Upon closing, CyberSource shareholders will receive $26.00 in cash per share. The deal is subject to customary closing conditions, including CyberSource shareholder approval and regulatory approvals, and is expected to be funded by Visa's existing cash on hand. This move signals Visa's commitment to expanding its e-commerce and security offerings.
Key Highlights
- 1Visa Inc. to acquire CyberSource Corporation for approximately $2.0 billion in cash.
- 2The acquisition price is $26.00 per share of CyberSource common stock.
- 3The deal is expected to strengthen Visa's position in e-commerce payment processing, risk management, and security.
- 4The transaction is structured as a merger involving a newly formed Visa subsidiary, Market St. Corp.
- 5CyberSource employee stock options will be substituted with options to acquire Visa common stock.
- 6The acquisition will be funded using Visa's cash reserves.
- 7The merger is contingent upon CyberSource shareholder approval and necessary regulatory clearances.