MasterCard agrees to buy 92.4 per cent of VocaLink for GBP 700 mln

VocaLink’s existing shareholders have the potential for an earnout of up to an additional GBP 169 million, if performance targets are met. This transaction is subject to regulatory approval and other customary closing conditions. Under the agreement, a majority of VocaLink’s shareholders will retain 7.6% ownership for at least three years.

VocaLink operates payments technology platforms on behalf of UK payment schemes, including BACS – the Automated Clearing House (ACH) enabling direct credit and direct debit payments between bank accounts, Faster Payments – the real-time account-to-account service enabling payments via mobile, internet and telephone, LINK – the UK ATM network.

This acquisition will allow MasterCard to play a more strategic role in the UK payments ecosystem, while bringing the innovation and knowhow from across the globe back to VocaLink’s home market. The result will be even more choice in how consumers, merchants and governments make and receive payments.

VocaLink supports and expands the products and services MasterCard offers issuers, governments and merchants. It will be the first combination of the traditional person-to-merchant cards business with a clearing business, which when fully developed, presents an additional opportunity to make a shift from the use of cash and cheques in business, government and personal payments.