PURCHASE, New York (
agreed to acquire
, a European payments service provider, for 360 pence a share in cash, or 333 million pounds ($517.25 million).
DataCash offers a single interface that provides e-commerce merchants with the ability to process secure payments across the world, MasterCard said in a statement Thursday. DataCash also offers fraud prevention solutions.
In 2009, DataCash processed more than 240 million transactions for more than 1,400 merchants. DataCash last year had revenue of 36.9 million pounds ($58 million) and an earnings before interest, taxes, depreciation and amortization margin of 46%.
MasterCard said the DataCash acquisition will create a long-term growth platform, and drive the growth of its e-commerce category, among other things.
MasterCard sees the transaction dilutive by about 5 cents a share to its fourth-quarter earnings. It expects the deal to be breakeven in 2011 and accretive in 2012.
The acquisition is expected to close by the end of October.
-- Reported by Joseph Woelfel in New York.
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