Will Mastercard (MA) Stock Be Helped by VocaLink Deal?

Mastercard (MA) stock is declining on Thursday afternoon as the company said it would buy 92.4% of VocaLink for $920 million.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Mastercard (MA) - Get Report are lower by 0.24% to $93.08 early Thursday afternoon as the company said it would buy a 92.4% stake in London-based VocaLink for about $920 million.

The move comes as the Purchase, NY-based payment company is looking to boost its presence in the U.K. market, Reuters reports.

VocaLink is a payment systems company.

Under the terms of the agreement, the majority of VocaLink's shareholders will have 7.6% ownership of the company for at least three years, according to a Mastercard statement.

The offer amount was adjusted for cash and other estimated liabilities.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MA

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