Visa Acquires CyberSource, Jumps Deeper into eCommerce
April 23, 2010
Visa Inc. yesterday announced it has agreed to purchase ecommerce processor CyberSource for $2 billion in cash. Visa said the acquisition will accelerate the growth of global ecommerce, driving increased usage of its debit and credit cards, according to a press release. The San Francisco-based card network also said it will leverage CyberSource’s extensive merchant client base—it claims a role in processing approximately 25 percent of all ecommerce dollars transacted in the United States—to increase adoption of Visa’s existing online payment solutions including the recently introduced Rightcliq. “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. “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.” CyberSource’s merchant clients include British Airways, Facebook, Home Depot and Google in addition to many small businesses, the statement said. Visa said the acquisition will likely be dilutive to its fiscal fourth quarter 2010 earnings, which is when it expects the transaction to close.