Digital payments provider Visa has agreed to acquire Software-as-a-Service (SaaS) technology firm Fraedom.
Fraedom offers payments and transaction management solutions for financial institutions and their corporate customers.
Since last 10 years, the company has been providing services to Visa, and its technology is used in Visa IntelliLink spend management platform for commercial and small-business clients.
The acquisition will help Visa to provide expanded business suite of solutions for the business-to-business (B2B) payments industry.
Fraedom provides transaction management products and services, comprising expense management and accounts payable solutions.
The firm’s products are using by financial institutions, payment networks, processors, governments and technology companies across the globe.
With offices in the UK, US, Canada, Australia, New Zealand, Singapore and Hong Kong , the company manages transactions for around 5.7 million employees across the globe.
Subject to the customary closing conditions, the deal is expected to complete in the first quarter of this year.
With an advanced global processing network, VisaNet can process more than 65,000 transaction messages per second.
Visa products and solutions global head Vicky Bindra said: “Increasingly, businesses are replacing inefficient paper-based payment systems with digital tools.
“This strategic acquisition allows Visa to offer a more comprehensive business solution to our corporate clients that is innovative, global, highly configurable and intuitive for their employees.”
Fraedom CEO Kyle Ferguson said: “The combination of Visa’s leadership, reach and deep knowledge of digital payments, coupled with our expertise in the B2B market for our growing customer base, will allow us to better service businesses around the world with fast, secure and robust commercial payments solutions.”
Image: Visa headquarters at Metro Center in Foster City. Photo: courtesy of Coolcaesar.