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:

• Drive the growth of the e-commerce category in concert with MasterCard’s acquiring customers, thus increasing the use of MasterCard-branded credit and prepaid products, as well as MasterCard and Maestro-branded debit products, for online purchases – particularly in Europe and other markets.
• Expand and enhance MasterCard’s successful MiGS gateway business currently operating in the Asia-Pacific region, enabling merchants to gain new market reach and access to value-added services.
• Leverage MasterCard’s network and global presence to more rapidly drive the global expansion and adoption of DataCash’s products and services beyond western Europe where a majority of DataCash’s business is conducted today.
• Combine DataCash’s and MasterCard’s fraud capabilities and expertise resulting in ‘end-to-end’ fraud screening and management services.
• Expand DataCash’s platform and launch MasterCard’s new generation of e-commerce, mobile commerce and other payment products, enabling merchants to quickly accept these new forms of payments with minimal integration challenges.

“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.

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