Almost exactly a year after announcing their $5.3 billion merger, Visa and Plaid have called off the proposed marriage, and the U.S. Department of Justice has agreed to drop its antitrust lawsuit challenging the deal.
“We are confident we would have prevailed in court as Plaid’s capabilities are complementary to Visa’s, not competitive,” said Al Kelly, chairman and CEO of San Francisco-based Visa. “…However, it has been a full year since we first announced our intent to acquire Plaid, and protracted and complex litigation will likely take substantial time to fully resolve.” … Declining to discuss potential fintech acquisitions, Kelly noted that Visa prefers to focus first on organic growth, followed by partnerships and acquisitions…
Zach Perret, co-founder and CEO of San Francisco-based Plaid, said the merger of his fintech company with payments giant Visa “would have been a great combination.” However, they’re not parting ways. Perret said Plaid will continue to collaborate with Visa as a strategic investor and partner.
Plaid’s technology enables apps to connect with users’ bank accounts. Its customers include fintech platforms like Venmo, SoFi, Betterment, Square, PayPal, Robinhood and Affirm, as well as tech players such as Google and Microsoft.