FT : MasterCard’s DataCash Move Is Not Money Wasted
Friday, August 20, 2010
MasterCard, the second-largest payments network, yesterday signalled its intent to fight back in the rapidly changing industry after agreeing to buy Data-Cash, a UK payment service provider. The US company will pay 360p per share in cash, representing a 53% premium to DataCash’s closing price on Wednesday of 234p, valuing the company at £333m ($520m). MasterCard has admitted it needs to compete more effectively in the payment and transfer of consumer cash around the world against nimbler, more web-focused rivals such as Pay-Pal, owned by Ebay. Traditional MasterCard competitors, including American Express and Visa, have committed to competing in the online payment market.
Ajay Banga, MasterCard chief executive, recently set up a division dedicated to bringing products to market faster. DataCash, listed on London’s junior Aim market since 1996, sells a single software interface that allows organisations to process secure payments online and offline anywhere in the world. DataCash shares soared 52% to 355p yesterday. “The acquisition of Data-Cash will expand our already significant e-commerce merchant gateway presence in Asia and Australia to European countries and other high-growth, emerging markets worldwide,” said Mr Banga…..DataCash was advised by UBS while Deutsche Bank advised MasterCard.
Reference : The Financial Times, Aug 20th 2010