Matercard has agreed to purchase DataCash, a British payment services provider, to have better access to the online payments market. The company sells a software system that allows companies the ability to process secure payments both online and offline globally. The company was founded in 1996.
While many see this as a response to the recent acquisition Visa made in its purchase of the online merchants company, Cyber Source, Mastercard said it was merely an expansion into e-commerce. Mastercard said it had searched for the right company to boost its presence in the e-commerce market. The company viewed DataCash’s top of the industry anti-fraud measures would be a major asset in its existing online payment business in Asia.
DataCash has accepted a purchase price from Mastercard of 333 million pounds.
The acquisition will also open up Mastercard to online commerce in the European markets as well as positioning it to be a bigger competitor to Visa in the US.
DataCash, a London based company currently employs 362 people and in 2009 processed more than 240 million transactions for 1,400 merchant customers.
DataCash’s chairman, Ashley Head, said the company now has the financial backing and strength to expand internationally. He and his team will stay on board to build the business. The deal has made him a multi-millionaire. Mr. Head became a major shareholder in DataCash when in 2006 the company purchased his anti-fraud software company Proc-Cyber and paid him in company shares giving him half of the company. His take in the company acquisition is approximately 143 million pounds. Another DataCash founder, Gavin Breeze, currently owns about 8.9 per cent of the company and is due to clear 30 million pounds in the deal.