Visa to buy Earthport, shares surge 261%

Visa to buy Earthport, shares surge 261%

Visa will be buying Earthport in a £198 million deal.

Shares in Earthport, the cross-border payment services group, surged after the announcement on Thursday.

The US-based payments group offered 30p for each Earthport share. This was four times the stock’s closing price on Monday of 7.45p.

“The Earthport board believes the offer by Bidco represents an opportunity for shareholders to realise an immediate and attractive cash value in Earthport today,” said Earthpot’s chairman,  Sunil Sabharwal.

“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.”

The group’s chief executive, Amanda Mesler, said on Thursday: “My focus, following a full strategic review, has been to rapidly implement a transformational growth strategy.”

“Whilst I believe Earthport is well positioned to deliver the potential it has always possessed, the all-cash offer from Visa represents a very attractive and immediate return for our shareholders.”

“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,” she added.

Shares in Earthpot have fallen over 28% over the year.

Shares in Visa (NYSE: V) are trading +6.89% (1139GMT). Shares in Earthpot are trading +261.48% at 26.70 (1141GMT).