NEW YORK — Payment processing giant Visa announced plans Monday to buy its sister company, Visa Europe, in a deal that could be worth more than $23 billion and would consolidate all of Visa’s operations worldwide.
The deal would make the world’s largest payment processing company even larger. The two companies have more than 2.9 billion cards issued on its combined network, processing roughly 88 billion individual transactions a year.
“We are very excited about unifying Visa into a single global company with unmatched scale, technology and services,” said Charles Scharf, Visa’s chief executive officer, in a prepared statement.
Under the terms of the transaction, Visa will pay 11.5 billion euros ($12.66 billion) in cash plus stock valued at about $5.5 billion. Visa Europe shareholders would also earn an additional payment valued at nearly $5.2 billion if certain revenue targets are met four years after the deal is closed, which is expected in mid-2016.
Visa plans to pay for the transaction through the issuance of $15 billion to $16 billion in new debt.