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Visa To Buy Fintech Company Plaid For $5.3 Bln

Visa Inc. (V) Monday said it has agreed to buy financial technology company Plaid for $5.3 billion.

Plaid's products allows consumers to share their financial information with thousands of apps and services such as Acorns, Betterment, Chime, Transferwise and Venmo.

"We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business," said Al Kelly, CEO and chairman of Visa. "Plaid is a leader in the fast growing fintech world with best-in-class capabilities and talent. The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers."

The acquisition is expected to close in the next three to six months. The transaction is subject to regulatory approvals and other customary closing conditions.

Visa plans to fund the deal from cash on hand and debt issuance. This transaction will have no impact on Visa's previously announced stock buyback program or dividend policy.

V closed Monday's trading at $195.33, up $1.56 or 0.81%, on the NYSE. The stock further gained $0.47 or 0.24% in the after-hours trading.

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