London-based forex specialist Currencycloud is to be acquired by payment giant Visa, in a deal worth £700 million ($963m)
Visa has announced it is acquiring London-based foreign exchange payments specialist Currencycloud, as the payment goliath continues its fintech expansion.
Visa said the acquisition builds on an existing strategic partnership between the two companies, and values Currencycloud at £700 million, inclusive of cash and retention incentives.
It added that the financial consideration will be reduced by the outstanding equity of Currencycloud that Visa already owns. Visa led an $80 million investment in Currencycloud at the beginning of 2020.
In 2017 Currencycloud CTO Ed Addario spoke to Silicon UK, and outlined why the firm had reached a point where an all-in move to cloud was the only way forward.
He pointed out that Currencycloud has experienced significant success since its birth in 2007, and has made the most of the fintech boom in recent years.
It is provider of a global payments platform that helps businesses move money quickly and securely around the world.
Its acquisition by Visa is the second major fintech acquisition of 2021, after the payments giant last month agreed to buy Swedish fintech Tink for $2.1 billion.
The Currencycloud platform supports nearly 500 banking and technology clients with reach in over 180 countries.
Visa said that Currencycloud will strengthen Visa’s existing foreign exchange capabilities by extending them to better serve financial institutions, fintechs and partners while enabling new use cases and payment flows.
It pointed out that cross-border payments have seen significant growth due to rising demand from businesses of all sizes to engage in international trade.
Visa said the the addition of Currencycloud’s capabilities to Visa’s network will widen access to innovative international payment products that help businesses meet their cross-border needs.
“The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy to facilitate global money movement,” said Colleen Ostrowski, Visa’s Global Treasurer.
“Consumers and businesses increasingly expect transparency, speed and simplicity when making or receiving international payments,” said Ostrowski. “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.”
“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,” said Mike Laven, CEO of Currencycloud. “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.”
Currencycloud will continue operations from its headquarters in London and will retain its current management team.
The deal will be subject to the usual regulatory and closing conditions.