Rare bidding that brought together two of the world’s leading payment cards – Visa and Mastercard. Earthport’s board of directors recommended that their shareholders should accept Mastercard’s lucrative buyout offers. This was after it was known that Mastercard’s offer was way better than what Visa was offering. Typically, Mastercard’s all-cash buyout offer was 10 percent higher than Visa’s. The board had previously recommended Visa Inc less than a month ago, but they made a U-turn after realizing the better offer from Mastercard Inc.
Initially, Earthport had planned that its shareholders would vote on the Visa offer on the 21rst day of February, but that won’t take place. The board has already withdrawn their recommendation, and it now looks clear that they will have to look in the direction of Mastercard Inc. Earthport later revealed that Mastercard Inc had tabled a lucrative offer soon after Visa offer. They had no alternative but to withdraw from the Visa partnership.
Earthport filing by the British regulatory authorities states that Earthport’s board came to a conclusion saying that Mastercard Inc’s offer was way better than Visa Inc’s proposal and that their shareholders will love it. It remains clear that the main reason why Earthport had to shift from Visa to Mastercard was because of the better offer presented by Mastercard Inc.
Tons of people thought that Visa Inc would act fast after the disappointment, but so far, they haven’t made a substantive remark. All they have said is that they were looking for better options and they will communicate on a later date once they have come to a solution. The statement was issued to the London Stock Exchange.
Earthport serves many clients across the globe. Some of the clients they serve include Hyperwallet, merchant account services to PayPal Holding’s Inc, Ripple, Bank of America, TransferWise. Even though Earthport is a London-based, it has regional offices in towns like Miami, New York, San Francisco, and Singapore.
After the endorsement, Mastercard came out to release a statement. In their report, they said that with the unique and rare capabilities like bank distribution, enhanced technology and reach, which include Mastercard Send and the Voaclink’s fast payment ability. Besides, they recognized that they were financially stable and that will enable them to service Earthport in a better way. They also revealed that they would be looking forward to ensuring that Earthport meets their development agendas.
Earthport is doing well financially. In 2017, they generated up to $30.3 million – that was an increase from their previous earning which was $22.8 million in 2016. It’s therefore clear why the two giants are fighting to secure bids with them.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.