Milbank, Tweed, Hadley & McCloy LLP has advised Visa Inc. on its agreement to acquire Visa Europe, creating a single global payments business.

The transaction consists of upfront consideration of €16.5 billion with the potential for an additional earn-out of up to €4.7 billion, including interest, payable following the fourth anniversary of closing, for a total value of up to €21.2 billion.  Both companies’ boards were unanimous in their support of the transaction.

The transaction, which is subject to regulatory and competition approvals and customary closing conditions, is expected to close in Visa Inc.’s fiscal third quarter of 2016.

Visa Europe, an association owned and operated by 3,000 European financial institutions in 38 countries, is the payments leader in Europe, with annual payment volumes in excess of €1.5 trillion and over 18 billion transactions processed each year.

Milbank’s team was led by Julian Stait (Co-Managing Partner of the firm’s London Office) and Cormac Alexander (Senior Associate).

“We are absolutely delighted to have been able to assist our valued client, Visa Inc., on this strategically important acquisition”, said Julian Stait.

Milbank’s London Office acted for Visa Inc. alongside Wachtell, Lipton, Rosen and Katz and Macfarlanes.