Mastercard Inc (NYSE:MA), a payment solutions company, has announced that it’s acquiring UK company VocaLink for $920 million.
MasterCard’s $920 million, which is £700 million, will net it 92.4% of the company. The deal allows a majority of VocaLink’s shareholders to retain a 7.6% ownership of the company for a minimum of three years.
VocaLink, which operates out of London, handles payments for various banks across the pond. It offers direct credit and direct debit payments between bank accounts and the ability to enable payments between accounts in real time via mobile, internet and telephone.
Shareholders could gain an earn-out of up to $220 million, £169 million, if the company meets performance targets after it’s acquisition by MasterCard. MA is expecting the deal to close in early 2017 if it gains approval from regulators.
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