Credit Bureau and fraud prevention services provider TransUnion announced plans to acquire IP geolocation and identity reverse lookup provider Neustar for $3.1 billion in an all cash deal.
The Buy Now, Pay Later (BNPL) alternative payment method is the hottest trend in payments right now. Amazon announced a major partnership with Affirm, Square will acquire Australian BNPL provider AfterPay, and now PayPal will acquire Paidy for $2.7 billion. All of this activity occurred in about a 40 day span.
Equifax finalized a deal to purchase Kount for $650 million, following suit after TransUnion acquired iovation in 2018 and Experian acquired 41st Parameter in 2013. Kount will maintain their headquarters in Boise, Idaho, as it becomes a part of Equifax’s United States Information Solutions (USIS) company. The deal is expected to close in the first quarter.
Following a series of accounting fraud scandals that resulted in the insolvency of German processor and payments provider Wirecard AG, Banco Santander will be acquiring their payment technology assets for €100 million.
The acquisition only includes the assets related to merchant services and payment processing with the approximately 500 employees who manage the assets, who will now join GETNET, Banco Santander’s global merchant services team.
Bank account authentication, funds confirmation and KYC provider GIACT will be acquired by Refinitiv, a financial technology and data vendor owned by London Stock Exchange Group. GIACT’s data and technology will complement Refinitiv’s due diligence, risk and compliance services while broadening the company’s digital fraud prevention and identity services.
The acquisition of GIACT both strengthens Refinitiv’s existing service offerings with stronger US data assets and broadens their service offerings and capabilities to additional industries.
LexisNexis prepares to fund two acquisitions totaling $855 million as parent company RELX looks to buy two major names in the identity authentication and risk management space. This includes the acquisition of ID Analytics from NortonLifeLock in January followed by the purchase of email authentication vendor Emailage, announced in mid-February. Both deals are expected to close in the first quarter of this year.
Visa announced their acquisition of Verifi on June 28th, about three months after MasterCard announced their acquisition of Ethoca. Both organizations offer issuer alert services that notify merchants of potential disputes before they become chargebacks. Visa’s acquisition comes over a year after overhauling their dispute process while MasterCard is in the process of doing the same.
Founded in 2000, PayNet provides a range of services and data products for leasing and commercial lending companies to make better credit granting and other decisions by understanding the credit history and risks of small and medium businesses. Equifax announced their acquisition of the company, for an undisclosed amount, on April 24.
PayNet and employees are now part of Equifax’s United States Information Solutions, the credit bureau’s largest business unit.
MasterCard announced on March 12 their acquisition of Ethoca, pioneer of the chargeback or issuer alert service. The acquisition is expected to close by the end of the second quarter and terms of the deal were not disclosed.
Ethoca came to market in 2005 with the first card issuer-to-merchant collaboration network, their Ethoca Alerts service. This network allows Ethoca’s now 4,000 financial institution partners to communicate disputed transactions with their more than 5,000 merchant clients, allowing the merchant to respond and potentially avoid a chargeback. These services, known as issuer alerts, can help organizations reduce costs and lower chargeback rates.
PayPal completes their fifth acquisition in the past 12 months, this time purchasing machine learning fraud prevention provider Simility for $120 million. PayPal COO Bill Ready says each of these five recent acquisitions are part of the company’s effort to strengthen the services they provide to merchants.
Simility was founded in 2014, they are based in Palo Alto and provide advanced risk analytic and modeling solutions for fraud prevention in the Customer Not Present (CNP) channel. Major clients include eBay/StubHub, Dick’s Sporting Goods and OfferUp. The fraud prevention provider had previously raised $25 million, including PayPal as one of their early investors.