CyberSource, the payment processor based out of Mountain View, California announced that their shareholders have approved Visa to purchase the company for $2 Billion dollars. The deal was first announced back in April when it was pending shareholder approval when Visa was to pay $26 per share. With today’s announcement, one can expect the deal to be completed July 21, 2010 (today).
Visa is looking to tap into the ever-growing ecommerce market by acquiring CyberSource which has perhaps the best and latest fraud prevention technology in the industry. This will certainly offer Visa the opportunity to enhance and increase the use of debit, prepaid, and credit card purchases online from cardholder using Visa credit or debit cards. This will allow for Visa to offer more tools to merchants, consumers and banks.
CyberSource’s has about 25% market shares in terms of the amount of e-commerce transactions that are processed within the US, utilizing Authorize.Net amount other products offered by the company. CyberSource has close to 300,000 merchants, processing for industry leaders such as Home Depot, British Airways, Google and more.
Source: company press release