Visa Alters Terms of Europe Deal and Warns of Delay; Shares Fall
- Purchase may not be completed until after June, Visa says
- Net income climbs 10% to $1.71 billion, beats estimates
Visa Inc., the world’s largest payments network, agreed to amend the terms of its planned acquisition of Visa Europe Ltd. after feedback from the European Commission, and said the deal may not be completed until after June 30.
Visa will boost the cash consideration by 1.75 billion euros ($1.98 billion), with 750 million euros of that sum due at closing and the rest on the third anniversary of the deal’s completion, Foster City, California-based Visa said Thursday in a statement before releasing fiscal second-quarter results. That replaces a so-called earn-out, in which a portion of the sale price would be tied to results after the transaction is consummated. The terms of the original contract, reached in November for as much as 21.2 billion euros, remained otherwise unchanged, Visa said.