With a gross estimation of 25% of all US online money transfers going through one of CyberSource's services, the company's management opted to sell their stock to Visa Inc., a worldwide known credit card company.
CyberSource is mainly known for running Authorize.Net, but has a big presence in developing and running e-payment platforms, with around 295,000 clients, some of them being major players like Google, Facebook and British Airways.
Their services have been used by millions of people, but mainly in the United States, with a negligible presence on the global market. Visa's Chairman and CEO, Joseph W. Saunders doesn't think so, targeting CyberSource mainly due to its global and mobile growth opportunities.
“With CyberSource, we are adding a new suite of leading eCommerce capabilities and experience in addressing eCommerce merchant needs. And, as eCommerce increasingly migrates to mobile devices, we believe the combination of Visa and CyberSource technology and services will position Visa to lead in mobile eCommerce," said Mr. Saunders.
Future opportunities look good on paper, but Visa Inc. surely must have seen better fraud detection and e-commerce security tools in CyberSource's portfolio, and especially their Authorize.Net service.
The final price tag was around $2 billion, Visa acquiring CyberSource shares at $26 per share, 34% more than its previous market closing price. CyberSource shares were valued at $19.44 the day before the transaction. The acquisition was announced within a
joint press release today April 21, 2010.
CyberSource's Chairman and CEO, Michael Walsh, will remain in charge of the company after the Visa takeover, while CyberSource founder and Chairman, William S. McKiernan, will join Visa as an Executive Advisor.
The transaction didn't need the approval of Visa's stakeholders, being previously approved by CyberSource's and the former's board of directors. On the other hand, the operations will need the approval of CyberSource's stakeholders.
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