Payments giant Visa has announced it has entered into a definitive agreement to acquire UK-based company Currencycloud.
Founded in 2012, Currencycloud’s global platform enables banks and fintechs to provide currency solutions for cross-border payments around the world.
The acquisition builds on the existing strategic partnership between the two companies and values Currencycloud at £700 million (approximately $963 million). However, the financial consideration is reduced by the outstanding equity of the company that Visa already owns.
Currencycloud CEO Mike Laven explained in a press release how the acquisition will enable it and Visa to deliver greater customer value when it comes to cross-border payments, saying:
“At Currencycloud, we have always strived to provide a better future for everyone from the smallest start-up to the global multinationals. Reimagining the flow of money in the global economy just got more exciting as we join Visa,” said Mike Laven, Chief Executive Officer, Currencycloud. “The combination of Currencycloud’s fintech expertise and Visa’s network will enable us to deliver greater customer value to the companies moving money across borders.”
Through its cloud-based platform, Currencycloud provides a wide range of APIs that enable banks and financial services providers to provide currency conversion services, including real-time notifications on currency transactions, multi-currency wallets and virtual account management. The platform also currently supports nearly 500 banking and technology customers with a reach in more than 180 countries.
The acquisition will enable Visa to strengthen its existing currency capabilities by expanding it to better serve financial institutions, fintechs and partners, while enabling new use cases and payment flows.
Cross-border payments have seen significant growth in recent years as a result of rising demand from businesses of all sizes looking to engage in international trade. By adding Currencycloud’s capabilities to the Visa network, the payment giant can broaden access to international payment products to help businesses meet their cross-border needs.
Following regulatory approval and customary closing conditions, Currencycloud will continue operations from its London headquarters and the company will retain its current management team.