Visa Inc. and Visa Europe Ltd. have reached a definitive agreement for Visa Inc. to acquire Visa Europe, creating a single global company, according to a joint press release.

The transaction consists of upfront consideration of 16.5 billion euros ($17.67 billion) with the potential for an additional earn-out of up to 4.7 billion ($5.19) euros payable following the fourth anniversary of closing, for a total value of up to 21.2 billion euros ($23.41 billion).

"Visa Europe has delivered impressive results over recent years and the board believes that it is the right time to reunite these two very healthy businesses under common management," Gary Hoffman, chairman of the board for Visa Europe, said in the announcement. "The deal will unlock significant value for members both through the consideration paid and because the board believes a combined Visa will be better positioned to serve the needs of customers going forward."

Visa Inc. CEO Charles W. Scharf said in the release that the company will maintain a "strong local management team in Europe," with London remaining as headquarters for the region.

Visa Europe, an association owned and operated by member banks and other payment service providers, has issued more than 500 million Visa cards across Europe. The association claims more than 1.5 trillion euros ($1.66 trillion) in payment volume, with 18 billion transactions processed annually, and partnerships with approximately 3,000 financial institutions in 38 countries.

According to the release, the deal will position the companies to take advantage of a significant growth opportunity in Europe, i.e., the estimated 37 percent, or $3.3 trillion, of personal consumption still transacted via cash and check.