Mastercard to buy Finicity for $825m

(Sharecast News) - Mastercard has agreed to buy Finicity, a US provider of real-time access to financial data and insights, for $825m.
There is also the potential for an earn-out of up to $160m for existing Finicity shareholders if performance targets are met.

Mastercard said the addition of Finicity's complementary technology and teams strengthens its existing open banking platform and will "enable and safeguard a greater choice of financial services, reinforcing the company's long-standing partnerships with and commitment to financial institutions and fintechs across the globe".

Mastercard president Michael Miebach said: "Open banking is a growing global trend and a strategically important space for us. With the addition of Finicity, we expect to not only advance our open banking strategy, but enhance how we support and accelerate today's digital economy across several markets.

"Finicity has a proven business, built on partnerships with thousands of banks and fintechs, similar to us. Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used."

The deal, which is subject to regulatory review and other customary closing conditions, is expected to close by the end of the year.