American multinational financial services company Visa has signed a definitive agreement to acquire UK-based cross-border payments provider Currencycloud for $963 million (700 million pounds).
The acquisition builds on an existing strategic partnership between the two companies. The US company stated that it has been a Currencycloud shareholder since 2020, and the financial consideration will be reduced by the equity that the card network company already owns in the startup.
Currencycloud will expand Visa’s existing foreign currency capabilities to better serve financial institutions, fintechs, and partners, as well as enable new use cases and payment flows.
“At Currencycloud, we’ve always strived to deliver a better tomorrow for all, from the smallest start-up to the global multi-nationals. Re-imagining how money flows around the global economy just got more exciting as we join Visa. The combination of Currencycloud’s fintech expertise and Visa’s network will enable us to deliver greater customer value to the businesses moving money across borders.”
“The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy to facilitate global money movement. Consumers and businesses increasingly expect transparency, speed, and simplicity when making or receiving international payments. With our acquisition of Currencycloud, we can support our clients and partners to further reduce the pain points of cross-border payments and develop great user experiences for their customers,” said Ms. Colleen Ostrowski, Global Treasurer at Visa.
Founded in 2012, Currencycloud helps approximately 500 banks and technology businesses, including well-known European fintechs Klarna, Monzo, Starling, and Revolut, make cross-border payments.
As per the statement, Currencycloud’s operations will continue to be managed from their London headquarters, with the present management team remaining in place. The transaction is subject to regulatory approvals and other customary closing conditions.