Visa agreed yesterday to acquire one of its portfolio companies, US-based financial data network operator Plaid, in a $5.3bn transaction that will also allow fellow corporates Mastercard, Citi and American Express to exit.
Founded in 2013, Plaid has built technology that enables users to transfer their data to third-party financial technology platforms. When a customer opens an account with a finance managament platform, for example, Plaid’s software allows them to link their bank account to the app.
The software supports some 2,600 fintech developers, to which Visa plans to expand its services and access through the transaction, broadening its reach across the financial services space.
Al Kelly, Visa’s chairman and chief executive, said: “We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business.
“Plaid is a leader in the fast growing fintech world with best-in-class capabilities and talent. The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers.”
Visa and peer Mastercard invested an undisclosed amount in Plaid in September 2019, a year after it raised $250m in series C funding from investment bank Goldman Sachs, New Enterprise Associates (NEA), Spark Capital, Andreessen Horowitz, Kleiner Perkins and Index Ventures at a $2.65bn valuation.
Goldman Sachs’ Investment Partners unit led a $44m series B round for Plaid in 2016 that included NEA and, the company later disclosed, payment services provider American Express and financial services firm Citi.
NEA had already co-led a 2015 series A round of undisclosed size for the company – still in stealth mode at the time – with Spark Capital. GV had backed Plaid’s $2.8m seed round two years earlier, participating with Spark Capital, NEA, Felicis Ventures and Homebrew.
