Payments technology major Visa through its subsidiary Visa International Service Association (Bidco) has offered to acquire UK-based fintech company Earthport for about £198m.

In this connection, the boards of Bidco and Earthport reached agreement on the terms of the recommended all-cash offer. As per the terms of the agreement, each of the shares in the British fintech firm will be bought by the Visa subsidiary for 30p.

Headquartered in London, the company is engaged in facilitating cross-border payments. The fintech company with regional offices across New York, Miami, Dubai and Singapore, offers its clients access to a global payment network.

It also maintains local banking partnerships under which client business is settled directly through local clearing to banked beneficiaries in more than 87 countries.

Earthport CEO Amanda Mesler said: “Visa shares our commitment to operational and technological excellence in cross border payments, and completion of the transaction would mean that Earthport and its customers will benefit from new opportunities arising from being part of a larger group with a shared vision.”

The offer made by Bidco to acquire the UK fintech firm is planned to be executed by way of a court-sanctioned scheme of arrangement. It will be subject to the further conditions and terms, including receipt of customary competition and merger clearances and also the approval of the UK Financial Conduct Authority.

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The directors of the UK firm, who have been advised by Rothschild & Co on the financial terms of the offer, consider its terms to be fair and reasonable.

Earthport chairman Sunil Sabharwal said: “The Earthport Board believes the offer by Bidco represents an opportunity for shareholders to realise an immediate and attractive cash value in Earthport today.

“Visa shares our vision of growth and expansion for Earthport and, as such, we believe it is a suitable and appropriate partner for our employees, partners, customers and other stakeholders.”

In October 2018, the UK fintech company was appointed by French retail banking company BNP Paribas to provide Automated Clearing House (ACH) cross-border payment services.