VISA AND PLAID TERMINATE MERGER AGREEMENT
Almost a year to the day after Visa Inc. announced its intent to acquire Plaid, the two organizations announced they’re terminating the proposed transaction. The companies agreed with the DOJ to dismiss related litigation.
The termination of the deal indicates the high price that Visa and Plaid paid for pursuing a proposed deal that was perceived to run afoul of existing regulations. Plaid is being sued by numerous banks including TD and PNC for its data and IP practices and the US Department of Justice alleged Visa entered the merger to unlawfully prevent competition. Future fin-tech deals and new product offerings will need to better demonstrate conformance to existing and evolving regulations as regulatory scrutiny increases in the red-hot fin-tech sector.
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