Visa to Acquire CyberSource for $2B

Visa is buying online securities provider CyberSource for $26 a share, or a total of about $2 billion.
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NEW YORK (TheStreet) -- Visa (V) - Get Report is buying online securities provider CyberSource (CYBS) for $26 a share, or a total of about $2 billion.

Visa said Wednesday that the combination will result in accelerated growth of eCommerce, thereby also increasing the usage of Visa debit, prepaid and credit products for online purchases, among a host of other benefits. The company also said that the combination will help merchants increase revenue through global growth, while minimizing financial loss from fraud.

CyberSource closed Tuesday at $19.44, meaning the acquisition price is a premium of 34%.

Keeping Data Safe From IT Snoops (Forbes)

Visa expects the transaction to be about 4 to 5 cents dilutive to its fiscal fourth-quarter per-share earnings on a reported basis and slightly dilutive to its fiscal full-year 2011 earnings per share.

-- Reported by Andrea Tse in New York

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