MasterCard Purchases DataCash
Regardless of legal issues, rejections and identity theft, credit cards continue to be one of the major deposit methods to wager online in the casino industry. Although players use electronic wallets to fund online casino accounts, they also use credit cards to load their electronic wallets. That’s why most players are interested in developments pertaining to credit card service providers.
Announced on August 19 MasterCard Inc. the world’s second largest payments network, agreed to purchase DataCash Group Plc. DataCash is a United Kingdom based processor of online credit card transactions. MasterCard will pay £333 million, which comes to $517 million in hard cash for the acquisition. This offer is wpould be levelled at 360 pence a share, this is 52% more than DataCash’s average closing price of 237 pence for the current month. MasterCard will conduct this deal through its MasterCard/Europay U.K. Ltd. unit, which has already received commitments to vote in favor of the transaction from owners of 52 percent of the stock.
CEO, Ajay Banga of MasterCard discussed the advantages of this deal which has been secured by his company. He said, “The acquisition of DataCash will widen our already significant e-commerce merchant gateway presence in Asia and Australia to European countries and other high-growth, emerging markets worldwide.” He also mentioned that The Third Man fraud screening business, developed by DataCash for the e-gaming industry, would aid to its existing online payments business in Asia. Banga who spoke in a conference call to analysts, investors and reporters. Outlining the potentials of the e-commerce industry, Banga said that the industry is still in its embrionic stage of development, especially outside the United States. The e- commerce space indicates a load of potential for the foreseeable future. Banga added, “The story of e-commerce is only being written now.”
DataCash was founded in 1996. It provides software linking online retailers with their payment systems. The offer was considered reasonable by the directors of DataCash, who will recommend it to shareholders. DataCash Chairman Ashley Head said, “The proposed acquisition represents a significant opportunity for DataCash to drive increased adoption of our platforms and programs internationally.” Incidentally, Head owns 43.4% of DataCash, meaning he’ll receive a hefty sum of £144.5 million from the deal.
The previous month MasterCard’s other competitor, Visa Inc., completed a $2 billion acquisition of CyberSource Corp. CyberSource assists merchants to accept online payments and provides security solutions and is a competitor of DataCash. Banga of MasterCard ruled out that their acquisition reaction had nothing to do with the Visa purchase, an independent decision taken without any external obligations.[addtoany]