MasterCard Agrees to Buy DataCash for $520 Million

MasterCard (MA) agreed to buy the UK payment service provider DataCash Group for £333 million ($520 million) to boost its e-commerce business.

MasterCard will pay £3.60 ($5.63) per share for DataCash, a premium of 54% over Wednesday's close, Reuters reported. MasterCard said it expects the deal to reduce its fourth-quarter earnings by about 5 cents per share, break even in 2011 and add to earnings in 2012.

DataCash reported 2009 pretax profit of £16.6 million ($25.93 million).

The deal is expected to close by the end of October.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum