Acquirer

AAA

DEFINITION of 'Acquirer'

1. The firm which is purchasing a company in an acquisition. The acquirer is also known as a bidder.

2. A financial institution or merchant bank (a merchant acquirer) which is contacted to authorize a credit card or debit purchase. The acquirer will either approve or decline the debit or credit card purchase amount. If approved the acquirer will then settle the transaction by placing the funds into the seller's account.

INVESTOPEDIA EXPLAINS 'Acquirer'

1. Usually the acquirer's stock price will see a short term drop when acquiring a company. The drop is due to the uncertainty of the transaction, also the acquirer will usually pay a premium for the purchase.

2. Every time you use your credit or debit card you are using the services of an acquirer. An Acquirer will charge a monthly and/or a per transaction fee to the stores or merchants to facilitate transactions. Acquirers need to be licensed with credit card companies, such as Visa or MasterCard.

RELATED TERMS
  1. Fixed Dollar Value Collar

    A floor and cap on the stock component of an acquisition transaction, ...
  2. Continuity Of Interest Doctrine ...

    A doctrine which stipulates that a corporate acquisition can ...
  3. Acquisition Financing

    The capital that is obtained for the purpose of buying another ...
  4. Acquisition

    A corporate action in which a company buys most, if not all, ...
  5. Acquisition Fee

    A fee charged by a lessor to cover the expenses incurred in arranging ...
  6. Acquisition Premium

    The difference between the estimated real value of a company ...
Related Articles
  1. 8 Reasons M&A Deals Fall Through
    Bonds & Fixed Income

    8 Reasons M&A Deals Fall Through

  2. Comparing Credit Card Companies
    Credit & Loans

    Comparing Credit Card Companies

  3. Credit Card Or Cash?
    Credit & Loans

    Credit Card Or Cash?

  4. War's Influence On Wall Street
    Bonds & Fixed Income

    War's Influence On Wall Street

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center