Earthport (EPO), the British business-focused payments network, have been offered £233 million for the company’s entire issued share capital from Bidco, a wholly-owned subsidiary of Mastercard.
After considering the offer and the advice received from Rothschild & Co, directors of Earthport recommended all shareholders accept the offer, which amounts to 33p per share.
They urged shareholders to take no action in relation to the offer Visa made for £198 million which was announced in December.
The offer represented a 10% premium to Visa’s bid, and a 343% premium to the 7.45p closing price before any offer was announced.
Sunil Sabharwal, Interim Chairman of Earthport, said: "The Board of Earthport is pleased to recommend Bidco's cash offer for Earthport which is at a 10 per cent. premium to the Visa proposal. This offer provides our shareholders with even greater value in cash for their shares."
The company’s major investors; Miton, Lombard and Hank Uberoi who together hold 13% of the share capital, have sent Bidco non-binding letters of intent to accept the acquisition offer.
The deal follows a troubled 2018 for Earthport who saw the loss a major a customer, reduced transaction volumes and a management shake-up.