Bloomberg Law
Jan. 15, 2020, 5:40 PM

Visa’s Plaid Takeover Signals Wave of Fintech Dealmaking (1)

Julie Verhage
Julie Verhage
Bloomberg News

After last year’sdeluge of financial technology megadeals, investors wondered if the boom could continue into 2020. This week, Visa Inc.’s $5.3 billion acquisition of Plaid Inc. offered an answer: Yes.

“Visa buying Plaid brings fintech from out in the wild to something more mainstream,” said Bain Capital Ventures’ Matt Harris. “It’s a ‘growing up’ moment for all of us,” he said, adding that the startup will now be part of the “critical infrastructure underlying the financial services industry.”

Plaid’s rapid ascent—Square Inc. looked at buying it in 2018 for just a fifth of the eventual selling price—comes as large companies ...