|Published:||Aug 19, 2010 4:36 PM EDT|
|Updated:||Aug 19, 2010 1:36 PM EDT|
PURCHASE, N.Y. (AP) - MasterCard is buying DataCash Group for $520 million in cash, a company that provides electronic payments and fraud prevention for customers buying goods online. Last year, it posted revenue of $58 million.
Shares in the company are up more than 50 percent Thursday at $356 each.
MasterCard is looking to DataCash Group PLC to boost its e-commerce growth and to expand its business in Asia.
MasterCard says the buyout will cut fourth-quarter net income by 5 cents per share. For the fiscal year 2011, the transaction is expected to break even, and to add to net income in 2012.
Shares of MasterCard Inc. fell $2.60, or 1.2 percent, to $210.26.