Visa Inc., the U.S. based publicly traded organization, announced on Monday November 2nd that they would be acquiring Visa Europe Ltd., their London-based counterpart, for $23.4 billion in cash and stock. The acquisition will increase the number Visa Inc. payment card accounts by 20 percent and total payment processing volume by approximately one-third. The deal, pending regulatory approval, is expected to close by June of 2016.
According to their annual earnings report, Visa Europe managed over 500 million payment card accounts and processed more than 16 billion transactions worth $1.65 trillion in 2014. Visa Europe netted €219.8 ($241) million over that time, which was a 29 percent increase in profit from the year before. For comparison, Visa Inc. processed $1.265 trillion, about three-fourths of what Visa Europe processes annually, in the fiscal quarter ending this past September, and has 2.44 billion active card accounts.