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Ten years ago, Visa might not have seen a need to invest so heavily in security software, but times have changed. Cyber security has never been more important, and so Visa on Wednesday announced it would spend $2 billion snatching up CyberSource, a provider of electronic payment and e-commerce security software.
The deal values CyberSource's stock at $26 a share, compared to the company's closing price of $19.44 per share on Tuesday. CyberSource's army of merchants currently stands over 295,000 strong, which includes both CyberSource and Authorize.net.
"Online commerce continues to grow rapidly, and this acquisition will enable Visa to offer new and enhanced services that will better meet the growing demand among merchants globally for robust, secure online payment processing capabilities which in turn will grow the entire eCommerce category," said Joseph W. Saunders, Chairman and CEO of Visa Inc. "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."
Visa said the deal doesn't require stockholder approval and expects it to close in the company's fourth fiscal quarter of 2010.
Image Credit: Visa
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