MasterCard is buying the company that runs the UK's ATMs for £700 million

MasterCard has signed a deal to buy 92.4% of London-based payments giant VocaLink for £700 million ($920 million).

The deal has long been touted and values London-based VocaLink at £757.57 million. VocaLink shareholders could get an extra a£169 million ($220 million) if performance targets are met.

VocaLink is a UK payments giant, running the country’s entire ATM network, the BACS clearing network that enables direct credit and direct debit payments between bank accounts, and Faster Payments, the payments network that lets you make payments to and from accounts on the phone, mobile, and internet in real time.

VocaLink also licenses its technology in Sweden, Singapore, Thailand and the US. MasterCard says the deal will allow it to ” play a more strategic role in the UK payments ecosystem.”

Ajay Banga, president and CEO of MasterCard, says in an emailed statement:

“We’re excited about the opportunity to play a bigger role in payments in the UK, a very strategic market for us. VocaLink is a unique company with outstanding technology, assets and people. We look forward to investing in and maximizing the technology, and embedding it in our products and solutions, both in the UK and around the world.”

David Yates, CEO at VocaLink, says:

“Today’s announcement is positive news for our partners, customers and employees. We will continue to focus on ensuring that the UK systems perform seamlessly, maintaining the highest levels of quality. At the same time, we’ll invest in further innovation to power competitive payments solutions for consumers and businesses around the globe.”

More to follow…


5 Top Fintech Predictions by the BI Intelligence Research Team. Get the Report Now »

NOW WATCH: 3 Wall Street legends share one investment they find attractive right now

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at