Visa and fintech startup Plaid announced termination of their proposed merger following the rejection by the Department of Justice. Visa and Plaid reached an agreement with the Justice Department to dismiss the litigation related to the proposed deal.
Visa had announced the US$5.3 billion deal to acquire Plaid in January last year. The company was eager to merger with the payment-tech startup Plaid that allowed people to connect their bank accounts with popular fintech platforms like PayPal.
The Department of Justice charged that Visa was looking to acquire Plaid in order to eliminate an emerging threat to its dominant debit business.