SAN FRANCISCO – (BUSINESS LIFE) – Visa Inc. (NYSE: V) and Plaid announced today that the companies have terminated their merger agreement and agreed with the Department of Justice to dismiss litigation related to the proposed deal. The proposed transaction was first announced on 13 January 2020.
“We are convinced that we would prevail in court, as Plaid’s capabilities complement Visa’s capabilities and are not competitive, “said Al Kelly, Chairman and CEO of Visa Inc.We believe that the combination of Visa with Plaid would bring significant benefits, including greater innovation for developers, financial institutions and consumers. However, it has been a whole year since we first announced our intention to acquire Plaid, and lengthy and complex litigation is likely to take considerable time to fully resolve. “
Mr Kelly added, “We are focused on accelerating our business by advancing our broader strategy and continuing to drive the three pillars of Visa̵
“There has been an unprecedented increase in demand for Plaid-powered services over the past year, and our priority is to support the hundreds of millions of people who now rely on fintech, ”said Zack Perett, CEO and co-founder of Plaid. “Last year, we made great strides by increasing our customers by more than sixty percent and adding hundreds of banks to our platform. Although Plaid and Visa would be a great combination, we decided instead to work with Visa as an investor and partner so that we could focus entirely on building the infrastructure to support fintech. “
Webcast and conference call information
Visa’s executive management team will host a live audio broadcast early 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.
All about Visa Inc.
Visa Inc. (NYSE: V) is a world leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling people, businesses and economies to thrive. Our state-of-the-art global processing network, VisaNet, provides secure and reliable payments worldwide and is capable of processing over 65,000 transaction messages per second. Our relentless focus on innovation is the catalyst for the rapid growth of digital commerce on any device and the driving force behind the dream of a cashless future for everyone, everywhere. As the world shifts from analog to digital, Visa is applying our brand, products, people, network and scale to change the future of commerce. For more information, visit usa.visa.com/about-visa.html, usa.visa.com/visa-everywhere/blog.html, and @VisaNews.
For the box
Plaid is a data network that powers the fintech tools that millions of people rely on to live healthier financial lives. Plaid works with thousands of fintech companies such as Venmo, SoFi and Betterment, several of the Fortune 500 and many of the largest banks to make it easier for people to link their financial accounts to the applications and services they want to use. The Plaid network covers 11,000 financial institutions in the United States, Canada, the United Kingdom and Europe. Headquartered in San Francisco, the company was founded in 2013 by Zack Peret and William Hockey.