Visa buying CyberSource for two billion dollars

Credit card giant Visa said Wednesday it was buying online payments company CyberSource for two billion dollars.

Visa said it had agreed to purchase CyberSource for 26 dollars a share, a premium of 37.25 percent over the Mountain View, California-based company's closing price on Tuesday.

CyberSource, a rival to eBay-owned PayPal, said it manages about 25 percent of the electronic commerce business in the United States. Its clients include British Airways, Home Depot, Facebook and Google.

"Online commerce continues to grow rapidly, and this acquisition will enable Visa to offer new and enhanced services," Visa chairman and chief executive Joseph Saunders said in a statement.

"With CyberSource, we are adding a new suite of leading e-commerce capabilities and experience in addressing e-commerce merchant needs," he said.

Saunders added that as e-commerce migrates to mobile devices, "we believe the combination of Visa and CyberSource technology and services will position Visa to lead in mobile e-commerce."

Visa said CyberSource president and chief executive Michael Walsh will continue to oversee CyberSource's operations after the transaction closes.

(c) 2010 AFP