Visa Inc. and the launch of financial technology Plaid announced on Tuesday that it had ended its plans to merge following the withdrawal of the Department of Justice’s antitrust.
Visa V,
CEO Al Kelly said in a release that although he was “confident” that the payment giant would succeed in the antitrust lawsuit brought by the Department of Justice, he believes that “lengthy and complicated lawsuit” is likely to be a significant one. would have taken time to completely resolve. Visa and Plaid have reached an agreement with the Justice Department to reject the lawsuits related to the proposed agreement.
Shares in Visa fell 0.9% on Tuesday.
Visa announced a $ 5.3 billion deal for Plaid on January 13, 2020. The company was eager to connect with a new payment technology player that enabled people to link their bank accounts to popular fintech platforms such as PayPal Holdings Inc. see PYPL. ,
Venmo.
The Department of Justice has charged that Visa was looking for Plaid to eliminate an emerging threat to its dominant debit business.
“We are committed to accelerating our business by advancing our broader strategy and continuing to drive the three growth pillars of Visa: consumer payments, new flows and value-added services,” Kelly said in Visa’s announcement.
CEO Zach Perret says his company has seen an unprecedented increase in demand for its services over the past year. “While Plaid and Visa would have been an excellent combination, we decided to work with Visa as an investor and partner so that we can fully focus on building the infrastructure to support fintech.”
Visa shares have risen 1.2% over the past three months than the Dow Jones Industrial Average DJIA,
added 7.7%.