US-based payment technology firm Visa has agreed to acquire the European open banking platform Tink for a total consideration of €1.8bn, including cash and retention incentives.
The move comes after Visa and Plaid terminated their planned $5.3bn merger after facing a civil antitrust lawsuit filed by the US Department of Justice (DOJ) on anti-competition grounds.
Tink is focused on enabling financial institutions, fintechs and merchants to build customised financial management tools, products and services, based on their financial data.
The acquisition is expected to combine Visa’s infrastructure and investment in resilience, cybersecurity and fraud prevention with Tink’s APIs, technology and customer relationships.
The transaction is subject to regulatory approvals and other customary closing conditions.
Upon closing of the transaction, Tink would continue operating with its current brand name and management team, from its headquarters in Stockholm, Sweden.
Tink CEO and co-founder Daniel Kjellén said: “For the past ten years we have worked relentlessly to build Tink into a leading open banking platform in Europe, and we are incredibly proud of what the whole team at Tink has created together.
“We have built something incredible and at the same time we have only scratched the surface. Joining Visa, we will be able to move faster and reach further than ever before.
“Visa is the perfect partner for the next stage of Tink’s journey, and we are incredibly excited about what this will bring to our employees, customers and for the future of financial services.”
Tink offers access to financial data, smart financial services, such as risk insights and account verification and personal finance management tools, all through a single API.
The firm is integrated with more than 3,400 banks and financial institutions, with millions of bank customers across Europe.
Visa intends to fund the transaction from cash on hand and is expected to have no impact on the company’s previously announced stock buyback programme or dividend policy.
The company said that Tink has been selected based on its vision to advance open banking to serve clients and the citizens in the UK and the EU, while investing in high-skill tech jobs.
Visa CEO and chairman Al Kelly said: “Visa is committed to doing all we can to foster innovation and empower consumers in support of Europe’s open banking goals.
“By bringing together Visa’s network of networks and Tink’s open banking capabilities we will deliver increased value to European consumers and businesses with tools to make their financial lives more simple, reliable and secure.”
Recently, Tink partnered with German payment provider Novalnet to bring a new open banking payment solution to the European payments market.
