American payment services giant Visa Inc. is paying £198 million ($250.6 million) to buy Ripple's partner Earthport Plc, a British firm that facilitates international transactions for banks and businesses.
Visa International Service Association, a unit of Visa, has offered 30 pence for each Earthport share, a price that is four times the stock’s Monday closing price of 7.45 pence.
Earthport Plc has been partners with Ripple, the blockchain-based payment network, since 2015.
“The Earthport board believes the offer by Bidco represents an opportunity for shareholders to realize an immediate and attractive cash value in Earthport today,” said Earthpot’s chairman, Sunil Sabharwal.
“Visa shares our vision of growth and expansion for Earthport and, as such, we believe it is a suitable and appropriate partner for our employees, partners, customers, and other stakeholders.”
The company’s increasing expenses and losses have become a reason why the shares lost more than 28% of their value.
Given these factors, the firm had nothing more to do than to announce last month that now they needed some serious upgrades for their business strategy.
“Whilst I believe Earthport is well positioned to deliver the potential it has always possessed, the all-cash offer from Visa represents a very attractive and immediate return for our shareholders.”
Earthport was established in the year 1997 to streamline the movement of money across the borders with the help of a single API to clear and settle funds locally with its banking partners.