Visa will be buying privately held financial technology startup Plaid in a $5.3 billion deal, according to a statement from the payments processor.
Visa and rival Mastercard had invested in Plaid in a $250 million series C funding round in 2018 that reportedly valued the firm at $2.65 billion. Visa said it expects the deal to close in the next three to six months and benefit its adjusted earnings per share at the end of the third year.
The purchase price is twice the final private valuation and Visa is funding the transaction from cash on hand and debt issuance.
Plaid focuses on enabling consumers and businesses to interact with their bank accounts, check balances, and make payments through financial technology applications.
Founded in 2013, its technology lets people link their bank accounts to mobile apps like Venmo. It links to over 11,000 financial institutions across the United States, Canada, and Europe.