Visa abandons $5.3 billion acquisition after DOJ objections

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Visa has abandoned its $5.3 billion bid to acquire fintech startup Plaid. In an announcement on Tuesday, the US Department of Justice said the two companies have agreed to call off their merger. The agency filed a lawsuit to block the deal last November, alleging at the time that, had it gone through, it would have allowed Visa to eliminate the startup as a “competitive threat to its online debit business before Plaid had a chance to succeed.” 

In a press release confirming the news, Visa said it believes it could have won the case, which was slated to go to court in June. “We are confident we would have prevailed in court as Plaid’s capabilities are complementary to Visa’s, not competitive,” said Al Kelly, the CEO and chairman of Visa. “However, it has been a full year since we first announced our intent to acquire Plaid, and protracted and complex litigation will likely take substantial time to fully resolve.”



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