If performance targets are met,
Finicity’s existing shareholders will earn up to $160 million on top of the sale price, taking the total value of the deal to $985 million.
This follows a similar move by rival
Visa in January, which saw the card issuer giant buy data aggregator fintech Plaid for five times the price of
Finicity at $5.3 billion.
Much like
Plaid’s open banking services,
Finicity allows financial services firms to gain financial insights around payments, account and asset verification, and transactions.
The card issuer giant also wants to focus on improving credit decisioning, and envisions that the integration of
Finicity’s account owner verification tools will speed up automated clearing house (ACH) and real-time payments.
Earlier this month, it was revealed that
Visa’s acquisition of
Plaid is being investigated by the UK’s
Competition and Markets Authority (CMA). This raises questions over
Mastercard’s acquisition of
Finicity, and whether it too will fall under regulatory scrutiny over potential impacts to competition.
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