Visa (V) Makes Second Bid of $1.4B to Acquire Brazilian Pismo
Visa Inc. V has reportedly increased its offer for a Brazilian cloud-based platform provider for banking services and payments, Pismo. Per Valor Economico, Visa’s original offer of $1 billion was rejected by the partners in the Sao Paulo-based technology company, against which the company raised the offer to $1.4 billion.
Pismo, backed by Amazon.com, Inc. AMZN and Softbank, is on the right path to global expansion. It has opened offices in the United States and the U.K. The company has expanded its operations in India and Singapore, which is likely to fuel its long-term growth. The potential acquisition will add Pismo’s assets to Visa, enabling the payments juggernaut to continue its inorganic growth strategy.
Per Pipeline, Visa is facing competition for Pismo’s lucrative assets. It processes 74 million accounts, which jumped 30% in the past six months. It has also reached the milestone of 38 million cards processed. Pismo’s series B fundraising of $108 million in October 2021 highlighted its growth path. Even though the company did not provide any valuation, the estimated valuation of the company was within $600-$700 million then, per Valor Economico.
For Visa, mergers and acquisitions, partnerships, and minority investments are some of the ways to achieve growth. The company consistently makes efforts to expand its Latin America footprint. These moves help the company to maintain its leading position in the payment network space. These acquisitions and investments are expected to accelerate V’s progress and extend the boundaries of its capabilities and network.
Price Performance
Shares of Visa have gained 6.3% in the year-to-date period compared with the industry’s 2.9% jump.
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Zacks Rank & Key Picks
Visa currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are International Money Express, Inc. IMXI and Remitly Global, Inc. RELY. While International Money Express sports a Zacks Rank #1 (Strong Buy), Nayax and Remitly Global carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Miami, International Money Express offers money remittance services. The Zacks Consensus Estimate for IMXI’s 2023 earnings indicates a 24.3% year-over-year increase.
Based in Seattle, WA, Remitly Global is a digital financial services provider. The Zacks Consensus Estimate for RELY’s 2023 earnings suggests a 5.9% improvement from year-ago levels.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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