Credit card and payment processor Mastercard Inc MA said Tuesday it reached an agreement to acquire a majority stake in Denmark-based Nets for 2.85 billion euros ($3.19 billion).
What Happened
Mastercard's acquisition includes the clearing and instant payment services and e-billing business of Nets' corporate services unit, the company said in a press release.
The addition of Nets' technology to its platform is meant to improve Mastercard's existing account-to-account capabilities, the credit card network said.
Nets' infrastructure complements Mastercard's existing technology but addresses a more expansive customer base, Mastercard said. The acquisition also brings better speed and scale to Mastercard's bill payment and open banking solutions.
Other benefits MasterCard said it expects to gain from the deal include data analytics and fraud protection.
Why It's Important
"We are a multi-rail company — this deal further demonstrates the strength of our strategy, staying ahead of the changing landscape, delivering essential choice to banks, businesses and consumers," Michael Miebach, Mastercard's chief product and innovation officer, said in a Tuesday statement.
The transaction is expected to close in the first half of 2020 and remains subject to regulatory approval and customary closing conditions.
The credit card network said it expects the transaction to be dilutive for the first two years after the deal closes due to purchase accounting and integration-related costs.
Mastercard shares were up 2.74% at $263.95 at the time of publication Tuesday.
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