The prepaid card unit manages consumer and corporate prepaid
travel cards to businesses including financial institutions, retailers, travel
agents and foreign exchange bureaus.
MasterCard Inc., which is based in Purchase, New York, said
the deal speeds up its strategic goals in the fast-growing prepaid card
category with expansion outside the US It doesn’t plan to issue cards directly
through the acquired operations, however.
Prepaid, already one of the fastest-growing card categories,
is expected to grow about 22 percent per year through 2017, according to a
recent study commissioned by MasterCard.
Travelex said the sale will allow it to speed up its
investment plans in higher growth areas like Asia and South America The
companies already work together. Last year, a majority of Travelex card
programs were converted to the MasterCard brand.
The deal comes with an additional $55 million incentive for
hitting certain performance targets. It is expected to close within the first
six months of next year.
MasterCard believes the acquisition will slightly reduce
earnings next year.
