Visa Acquiring Plaid for $5 Billion

Credit card giant moves to snap up fintech business connecting apps and accounts.
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Visa Inc.  (V) - Get Report said Monday it is acquiring privately held Plaid for $5 billion in a move that will give it more access to tools that connect user applications with financial accounts.

The price is nearly double Plaid’s latest valuation.

Visa said it will fund the transaction “from cash on hand and debt issuance at the appropriate time.” The company added that the deal “will have no impact on Visa’s previously announced stock buyback program or dividend policy. The transaction is expected to close in the next three to six months.”

Plaid is a data network used many financial apps and services including Acorns, Betterment, Expensify, and Venmo. The San Francisco company was founded in 2013 by Zach Perret and William Hockey.

In December 2018 the company executed a $250 million funding round that valued it at about $2.65 billion. The round was led by venture capitalist Mary Meeker who joined Plaid's board. Goldman Sachs   (GS) - Get Report is also a backer of the company.

Shares of Visa were unchanged in after-hours trading.