MasterCard is set to acquire European payment service provider DataCash in a deal worth £333 million ($518 million).
DataCash develops and provides outsourced electronic payments solutions, fraud prevention and alternative payment options. MasterCard wants to acquire the business to drive growth of in the e-commerce section of its business.
“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,” said Ajay Banga MasterCard president and chief executive officer.
MasterCard’s offer for DataCash is valued at 360 pence per share and is subject to shareholder approval. The companies directors have recommended shareholders accept the deal, which is expected to close in October.
In 2009 DataCash processed more than 240m transactions for more than 1,400 merchants across a variety of sectors. The company reported revenue of £36.9m for the year ended December 31, 2009.
DataCash employs 362 people with operations in London, Dublin, Mannheim and Cape Town.