Visa Inc has agreed to buy privately held financial technology startup Plaid Inc in a US$5.3 billion deal, the payments processor said on Monday.
The agreement could be announced this week, though it's still possible that the talks could break down, the people said.
Founded in 2013 and now connecting with over 11,000 financial institutions across the United States, Canada and Europe, Plaid will be able to use the acquisition to leverage Visa's global brand in expanding its own business, according to a source familiar with the matter.
The takeover of the fintech darling will give Visa a great opportunity to "accelerate" the company's business beyond cards, according to its CEO Al Kelly. "The combination of Visa and Plaid will put us at the epicenter of the fintech world, expanding our total addressable market and accelerating our long-term revenue growth trajectory".
The purchase price is twice the final private valuation and Visa is funding the transaction from cash on hand and debt issuance.
Plaid will continue to operate as an independent company after the deal closes.