MasterCard to Acquire DataCash to Drive E-commerce Expansion
MasterCard has entered into an agreement to acquire DataCash Group, a European payment service provider, for approximately £333m. DataCash offers a single interface that provides e-commerce merchants with the ability to process secure payments across the world. It develops and provides outsourced electronic payments (e-payments) solutions, fraud prevention, alternative payment options, back-office reconciliation and solutions for merchants selling via multiple channels.
MasterCard believes the acquisition of DataCash will create a long-term growth platform, providing the company with the ability to:
“E-commerce represents an important part of MasterCard’s growth strategy, and this acquisition will allow us to provide new services to our acquiring customers, as well as drive increased e-commerce penetration in both existing and new markets,” said Ajay Banga, MasterCard president and chief executive officer (CEO). “The acquisition of DataCash will expand our already significant e-commerce merchant gateway presence in Asia and Australia to European countries and other high-growth, emerging markets worldwide.”
The transaction, which is expected to close by the end of October 2010, is subject to a number of conditions as set forth in the announcement released this morning in accordance with Rule 2.5 of the UK Takeover Code, including DataCash shareholder approval.