Visa to buy Earthport in £198m deal

Visa Inc has agreed to buy London-listed Earthport, which provides cross-border payment services to banks and businesses, in a £198m cash deal.

Visa International Service Association - a unit of Visa - has offered 30p for each Earthport share.

Earthport’s directors intend to recommend unanimously that shareholders vote in favour of the deal, the terms of which they believe to be "fair and reasonable".

Earthport chairman Sunil Sabharwal said: "The Earthport board believes the offer by Bidco represents an opportunity for shareholders to realise an immediate and attractive cash value in Earthport today. Visa shares our vision of growth and expansion for Earthport and, as such, we believe it is a suitable and appropriate partner for our employees, partners, customers and other stakeholders."

The company’s chief executive, Amanda Mesler, said: "Having been appointed as Earthport's CEO in July my focus, following a full strategic review has been to rapidly implement a transformational growth strategy. Whilst I believe Earthport is well positioned to deliver the potential it has always possessed, the all-cash offer from Visa represents a very attractive and immediate return for our shareholders.

"On behalf of the entire executive team, I would like to thank all of our employees for their outstanding contribution to making Earthport the unique and valuable company it is today. Visa shares our commitment to operational and technological excellence in cross border payments, and completion of the transaction would mean that Earthport and its customers will benefit from new opportunities arising from being part of a larger group with a shared vision."

At 0820 GMT, Earthport shares were up 281% to 28.40p.