Visa is to acquire European Open Banking platform Tink for €1.8 billion, filling a Plaid-shaped hole in its portfolio after a $5.4 billion deal to acquire the US data sharing outfit was scapped following pushback from regulators.
Tink connects to more than 3,400 banks that reach over 250 million bank customers across Europe. Founded in 2012 in Stockholm, the company's 400 employees serve more than 300 banks and fintechs in 18 European markets, out of offices in 13 countries.
Under the agreement with Visa, Tink will retain its brand and current management team, and its headquarters will remain in Stockholm, Sweden.
“Visa is committed to doing all we can to foster innovation and empower consumers in support of Europe’s open banking goals,” says Al Kelly, CEO and Chairman of Visa. “By bringing together Visa’s network of networks and Tink’s open banking capabilities we will deliver increased value to European consumers and businesses with tools to make their financial lives more simple, reliable and secure.”
The transaction is subject to regulatory approvals and other customary closing conditions.
The deal marks the second major acquisition of a Swedish fintech by a US giant following PayPal's $2.2 billion buy out of Square rival iZettle in 2018.
European venture fund Dawn Capital is an investor in Tink and was also an investor in iZettle.
John Bell, general partners at Dawn Capital states: “With Tink and iZettle, Sweden has now produced two of Europe's largest ever fintech M&A exits, reflecting the world-class innovation, commercial excellence and entrepreneurial talent we have found across the Nordic market. As the only investor in both companies, we are delighted to have supported their successful journeys to new homes within corporations with global reach, validating the relevance of the B2B tech coming out of Europe. We wish Tink continuing success in the next chapter of its journey.”