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Mastercard acquires Finicity with US$825m deal
[NEW YORK] Mastercard is making a deeper push into financial data with an US$825 million deal to acquire technology firm Finicity.
The purchase helps Mastercard give banks the ability to speed up credit decisions or improve account verification processes, using Finicity technology that lets companies share consumers' financial data.
"Finicity has a proven business, built on partnerships with thousands of banks and fintechs, similar to us," Mastercard President Michael Miebach said in a statement Tuesday. "Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used."
Mastercard said the deal, which is expected to close by the end of the year, won't be "incrementally dilutive" for more than two years. Finicity's existing shareholders also have the potential for an additional earn-out of as much as US$160 million if performance targets are met, Mastercard said.