1. Visa Inc. and Visa Europe
By: Jacob Kilgore

2. The Announcement
 11/02/2015 the formation of a global company.
 Total transaction value= 21.2 billion Euros= $23.4 billion.
 “Shares fell 2.7 percent to $75.47 at 10:11 a.m”(Dexheimer, 2015)
 Currently under regulatory approval
 Greater access for Visa clients
 Motives
Lack of income from Europe
Client database

3. The Players
The Acquirer- Visa Inc
 Headquarters in California
 World largest payment system
 Went public in 2007
The Target- Visa Europe
 Separated from Visa Inc. in 2007
 Headquarters in the UK
 Owned and operated by 3000
banks and other payment service
providers (investors)
 Payments leader in Europe

4. Visa Europe
Operating Conditions
 56.9% market share
 Outperforms MasterCard (issuing cards,
volume of payments, average payments)
 Unveiled Visa/ Apple pay in Europe
 Partnered with Saint Martin’s college (UK)-
wearable payment devices
Financial Conditions
 18 billion transaction
 1.5 million Euros in revenue
 263,986 euros in profit
 Debt-free balance sheet
 26-27% operating margin

5. Visa Inc.
Operation conditions
 Multinational corporation
 #238 on the fortune 500
 Working with Chevron- mobile payment
 Working in Africa
 World most Ethical companies(Ethisphere)
 Market beta of 1.021
Financial Conditions
 Total revenue of 13.880 Billion (12.7 in 2014)
 4.8 billion in total operating expense (4.5 in
2014)
 Net income of 6.438 billion (5.7 in 2014)
 Debt/equity ratio of 53.86
 Operating margin of 65.68%

6. Strategies
 Put option agreement of 2007- when exercised, Visa Europe would require Visa Inc.
 Purchase all of Visa Europe outstanding capital stocks
 The price would be determined by a formula
 There would be a timetable for the purchases
 Open their arms to Visa Inc.
 Agreement would be reverted to original terms if the transaction is not completed.

7. Synergy and Integration Cost
Synergy
 “Visa Inc. expects to reach
approximately $200 million in cost”
annually(Scott, 2015)
 Better estimation will begin in 2018
Integration cost
 Initial cost of $150 million in 2016
 It will total $450-$500 million by 2020
 $15-$16 billion in debt

8. Benefits
Visa Europe has less restriction to Visa inc. products capital,
talent, and resources
Visa Inc, gets to truly capitalize on the Europe
Cost savings and faster service for clients
Integration of knowledge

9. Reference and Additional Information
 Visa Europe page
 Visa INC homepage
 Visa Inc. fact sheet
 Dexheimer, E. (2015, November 2). Visa Agrees to Buy Visa Europe for as Much as $23.4 Billion.
Retrieved April 11, 2016, from http://www.bloomberg.com/news/articles/2015-11-02/visa-agrees-
to-buy-visa-europe-for-as-much-as-23-4-billion
 Scott, A. (2015, December 11). Visa Inc: What Does Recent Visa Europe Acquisition Hold?
Retrieved April 11, 2016, from http://www.businessfinancenews.com/26729-visa-inc-what-does-
recent-visa-europe-acquisition-hold/