SAN FRANCISCO--(BUSINESS WIRE)--Apr. 21, 2016--
Visa Inc. (NYSE: V) today announced that, in response to feedback
received from the European Commission, the Company and Visa Europe have
reached preliminary agreement to amend their Transaction Agreement to
eliminate the earn-out portion of the transaction consideration. The
terms of the transaction remain otherwise unchanged.
Instead of an earn-out, the cash consideration payable in the
transaction will be increased by €1.75 billion: €750 million payable
upon closing, and €1.0 billion, plus 4% compound annual interest,
payable on the third anniversary of closing. The transaction remains
subject to the negotiation of the definitive documentation of this
amendment and regulatory approval. While the parties continue to work
toward closing as soon as possible, closing could extend beyond the end
of the Company’s fiscal third quarter.
About Visa Inc.
Visa Inc. (NYSE: V) is a global payments technology company that
connects consumers, businesses, financial institutions, and governments
in more than 200 countries and territories to fast, secure and reliable
electronic payments. We operate one of the world’s most advanced
processing networks — VisaNet — that is capable of handling more than
65,000 transaction messages a second, with fraud protection for
consumers and assured payment for merchants. Visa is not a bank and does
not issue cards, extend credit or set rates and fees for consumers.
Visa’s innovations, however, enable its financial institution customers
to offer consumers more choices: pay now with debit, pay ahead of time
with prepaid or pay later with credit products. For more information, visitusa.visa.com/about-visa,
This release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally are identified by words such as
“will,” "could," and other similar expressions. Examples of
forward-looking statements include, but are not limited to, statements
Visa Inc. makes about the likelihood and timing of EC approvals and
closing of the acquisition.
By their nature, forward-looking statements: (i) speak only as of the
date they are made; (ii) are not statements of historical fact or
guarantees of future performance; and (iii) are subject to risks,
uncertainties, assumptions or changes in circumstances that are
difficult to predict or quantify. Therefore, actual results could differ
materially and adversely from Visa Inc.’s forward-looking statements due
to a variety of factors, including the risk that the transaction may not
be consummated; matters arising in connection with the parties' efforts
to comply with and satisfy applicable regulatory approvals and closing
conditions relating to the transaction; and various other factors,
including those contained in our Annual Report on Form 10-K for the
fiscal year ended September 30, 2015, our Quarterly Report on Form 10-Q
for the quarter ended December 31, 2015, and Visa Inc.’s other filings
with the U.S. Securities and Exchange Commission.
You should not place undue reliance on such statements. Except as
required by law, Visa Inc. does not intend to update or revise any
forward–looking statements as a result of new information, future
developments or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160421006630/en/
Source: Visa Inc.
Jack Carsky or Victoria
Connie Kim, +1-212-521-3962