Payments technology company Visa had signed a deal to buy European open banking platform Tink and would pay $2.15 billion, inclusive of cash and retention incentives, for the acquisition.
Visa will fund the transaction from cash on hand and it will have no impact on Visa’s previously announced stock buyback program or dividend policy. The transaction is subject to regulatory approvals and other customary closing conditions.
Tink is integrated with more than 3,400 banks and financial institutions, reaching millions of bank customers across Europe. After the acquisition, the platform will retain its brand and current management team, and its headquarters will continue to be in Stockholm, Sweden.
The merger of Visa’s proven infrastructure and sustained investment in resilience, cybersecurity and fraud prevention with Tink’s Application Programming Interface (API) technology and customer relationships is expected to help speed up the adoption of open banking in Europe by ensuring a secure, reliable platform for innovation.
As a result, consumers can better control their financial experiences, including managing their money, financial data and financial goals. Similarly, businesses will get a more customized range of tools to operate digitally and securely, whether reconciling bank statements and accounts or enabling alternative financing.
“Visa is committed to doing all we can to foster innovation and empower consumers in support of Europe’s open banking goals. By bringing together Visa’s network of networks and Tink’s open banking capabilities we will deliver increased value to European consumers and businesses with tools to make their financial lives more simple, reliable and secure. Visa is the perfect partner for the next stage of Tink’s journey, and we are incredibly excited about what this will bring to our employees, customers and for the future of financial services.”
Charlotte Hogg, CEO of Visa Europe, added, “This acquisition is a sign of our commitment to Europe. In Tink, we have found a strong partner with whom we can accelerate innovation in open banking for the benefit of our collective clients and the citizens of the UK and the EU while investing in high-skill tech jobs on the continent.”