The largest acquisitions in the payment systems market in 2015

This year, following the trend of 2014, large acquisitions continued in the payment systems market. What is worth only the purchase of an American multinational company Visa Inc. its formerly subsidiary company Visa Europe. We wrote about this in November in Habré . And if we turn to a wider period, we find that the whole of 2015, in principle, turned out to be rich in significant events for companies operating in the market of payment systems.

We, PayOnline , which itself is actively integrated into the payment industry, would like to highlight such events as thoroughly as possible. Next, we will present a list of the most significant transactions concluded in 2015.

Many payment companies began to seriously work on finding and acquiring technology suppliers. This clearly indicates that they are interested in providing technological services to customers. Wishing to meet the expectations of the modern digital generation, payment companies focused on such actual solutions as mobile payments, cloud services, biometric authentication and others.

PayPal acquires Xoom

PayPal Incorporated and Xoom Corporation announced the signing of a final agreement whereby PayPal will acquire Xoom at a price of $ 25 per share in monetary terms, equivalent to $ 890 million, including the company's debt. As a result of the transaction, the completion of which is expected in the fourth quarter of 2015, Xoom will operate as a separate service within PayPal. To complete the transaction, you will need to fulfill standard conditions for such cases, such as approval of Xoom shareholders, expiration or early termination of the waiting period under the Hart-Scott-Rodino Act, as well as obtaining certain approvals related to the Xoom license for remittances.
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Buying LoopPay by Samsung

The transaction took place in February of this year. Earlier, LoopPay was widely recognized as a supplier of ready-made solutions for the use of smartphones as mobile wallets. The technology developed by the company called Magnetic Secure Transmission (Secure Magnetic Transmission) turns existing magnetic card readers into secure wireless receivers, on the side of which all the necessary operations are performed. The implementation of LoopPay is possible for more than 90% of the existing payment terminals, without any need for merchants to invest in infrastructure upgrades. With this purchase, Samsung recently joined the battle for the mobile payment segment by launching its own payment service, Samsung Pay, which was based on MST technology. According to Re / code, the transaction amount was $ 250 million.

Prosper Marketplace Acquires Billguard

Prosper Marketplace has announced the signing of a final agreement on the acquisition of BillGuard , a personal finance application that allows users to protect and control their money and real-time identification information from their mobile devices.

This transaction combined the popular and rapidly growing financial application with the knowledge and experience of Prosper in the field of collective mutual lending. According to his mission, Billguard seeks to empower clients to control and protect personal funds. After integration with Prosper, the combined company will have at its disposal all Billguard services, as well as the Prosper platform and credit tools. Both companies have similar values, including the desire to establish communication between users at the social level, to help them secure their funds, increase the level of knowledge about the subject and, ultimately, make them more successful.

FIS absorbs SunGard

FIS , one of the world's largest providers of banking and payment technologies, has signed an agreement to acquire SunGard . The deal is expected to be finalized in the fourth quarter of this year. Under the terms of the contract, FIS will have full control over the assets of SunGard. Shareholders of the latter will receive compensation in cash and through a transaction in the stock market. The cost of SunGard was estimated independently at $ 9.1 billion, taking into account the debt of the company that FIS plans to refinance. The annual profit of the combined company will be 9.2 billion dollars. After the takeover, FIS will have at its disposal unique opportunities to offer a wide range of banking services and new capital raising instruments to financial institutions and commercial organizations around the world.

Envestnet acquires Yodlee

Envestnet is a leading provider of services for financial advisers and a developer of integrated capital management technology. Yodlee supplies personal finance management applications to the 11 largest banks in the US by assets. The boards of directors of both companies unanimously approved the final version of the contract, according to which Envestnet would acquire a full stake in Yodlee at a diluted price of $ 18.88 per unit, which would be about $ 660 million. The acquisition will take place in the stock market and in the form of transfer of cash and cash equivalents. Companies have already pooled assets worth $ 70 million, and in fact, about 590 million are actually required to complete the transaction. The merger process is expected to end in the fourth quarter of this or in the first quarter of next year.

D + H acquires Fundtech

D + H made a deal worth $ 1.25 billion to acquire Fundtech , a leading provider of financial technology, operating in virtually all regions of the world. Fundtech has a client base of about 1,200 companies, among which you can find both medium-sized companies and the largest and globally operating banks, central banks, corporations and other financial institutions.

Visa buys TrialPay

Following the licensing of TrialPay technology and the close collaboration that followed, Visa announced it had acquired a recent partner. Founded in 2006, the company is one of the leaders in the development of payment technologies. Its services are used by 20 thousand sellers from 180 countries of the world, serving a total audience of 500 million people. With the help of TrialPay, Visa will be able to analyze the history of the operations conducted by customers and provide special offers tailored to their needs, which will act as a kind of incentive. The customer will be able to buy a potentially attractive product or service and will receive additional products or services as a reward.

PayPal acquires Paydiant

Paydiant was established in 2010 in Boston. Paydiant has developed its own cloud platform and, on its basis, offers sellers the services of embedding unique payment methods and special offers into their existing applications. This allows stores to offer payment options, benefits and special offers that take into account the specifics of the goods or services being sold. It is reported that the value of the transaction amounted to 280 million dollars. By purchasing Paydiant, PayPal intends to improve the quality of its services.

MasterCard Acquires Applied Predictive Technologies (APT)

The company Applied Predictive Technologies (APT), working in the field of cloud analytics and big data, was bought by MasterCard for $ 600 million. The deal is beneficial for both parties, and it can be viewed as part of MasterCard’s plan to expand its technological capabilities. In February 2015, MasterCard announced its intention to allocate funds from the budget in the amount of $ 20 million to improve existing cybersecurity technologies. Now the company is already working on the implementation of its plans to launch biometric authentication. MasterCard plans to use the APT-developed Test & Learn platform, as well as its other services, in combination with its own analytical experience. According to the management of MasterCard, this will provide customers with more sophisticated decision-making tools.

Square acquires Kili Technology

Prior to the transaction, Kili Technology developed and supplied solutions to simplify and streamline the payment processing process. The company was engaged in integrated development of devices, which includes design, development of hardware and electronics, the creation of ready-made models, firmware and software for them. Square expects this acquisition to help her set up simple, affordable, and safe equipment for accepting payment in stores. Kili is known for its low-cost single-chip systems and modules that allow contactless payments.

Global Payments acquires Realex Payments

Global Payments Corporation, one of the leading providers of payment technologies, announced the purchase of Realex Payments , one of the largest and fastest growing payment gateways in Europe, which provides its services to online businesses. This acquisition is part of the Global Payments strategy aimed at building a unified system combining payment gateway services, payment processing and acquiring, and available throughout Europe. Under the terms of the contract, the value of the transaction was estimated at 115 million euros.

Capital One bought Level Money

Level Money , now owned by Capital One , is a San Francisco-based startup that has developed a personal funds management application. Since its introduction in 2013, the application has been downloaded over 700,000 times. The amount of operations made with its help amounted to more than 12 billion dollars. The application helped users to get out of debt, make more rational purchasing decisions, ease the stress associated with financial difficulties and made it easier for them to work with personal finances.

BBVA Acquires Spring Studio

BBVA bought Spring Studio to implement its digital banking programs. The acquisitions are part of BBVA’s overall strategy, aimed at becoming a leader in the technological transformation of the financial services industry. For example, last year BBVA acquired Simple, a pioneer of digital banking services in the United States, and Madiva Soluciones, a Spanish big data startup.

Northwestern Mutual acquires LearnVest

Northwestern Mutual bought LearnVest , an online service that provides a range of financial planning and consulting services. This partnership allows you to combine all the best that both companies can offer: financial professional services, Northwestern Mutual's best-in-class products, and LearnVest, an advanced technology-based financial planning platform. According to Forture, a startup from New York was acquired for more than $ 250 million.

Velocity Mobile purchased Cover

For Velocity , a London-based startup that is currently seeking access to major international markets, the acquisition of American Cover will provide a well-developed network of customers and restaurants connected to the Cover system in the most interesting cities in the United States. More than 350 restaurants in New York, San Francisco and Los Angeles will become part of the global platform Velocity, turning it into the largest payment company serving the restaurant business.

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