Experian, the leading global information services company, has announced an agreement to acquire 41st Parameter, the market leader in device identification technology and web fraud detection for $324M.
41st Parameter was venture backed by Kleiner, Perkins, Caufield, Byers, Georgian Partners, Northwest Venture Partners, and Jafco Ventures, among others. According to Kleiner, Perkins, Caufield & Byers site, “The aggregate purchase price for all outstanding stock, stock options and warrants of 41st Parameter is US $324m, of which US $14m is subject to limited, two-year earn-out provisions, and will be funded from Experian’s existing cash resources. The transaction is subject to customary closing conditions.”
41st Parameter plans to strengthen Experian’s global web fraud detection and risk-based identity practices, which is a huge concern for customers all over the world, especially in Internet transactions.
I spoke with Jon Jones, senior vice president of Fraud and Identity Solutions for Experian Decision Analytics to learn more about the acquisition:
Why 41st over other companies?
“41st Parameter strengthens Experian’s global web fraud detection and risk-based identity authentication capabilities. They provide patented device identification technology that enables clients and their consumers to interact on the web effectively and securely, recognizing consumers to reduce fraud losses and enhances efficiency and improves the customer experience through an approach known as risk-based authentication.”
In addition, “It sets Experian apart from other products in the risk-based authentication market by reducing fraud detection errors known as “false positives” which result in customer frustration and lost sales.”
When will the integration begin and what should your customers expect?
“41st Parameter will continue to operate as a separate business unit as a part of Experian…It’s business as usual for existing customers. We are very excited about this since Experian’s history of providing leading technology and information services to all the industries 41st services will enable increased investment and expanded development of the 41st product lines.”
Will there be any changing of the guard?
“The 41st Parameter management team will continue to play an integral role in the on-going management of the business.”
What are the most common threats Experian customers face?
“Consumers around the world are increasingly reliant on a variety of Internet-connected devices for everything from banking to shopping to entertainment and media. Creating relevant on-line customer experiences and preventing fraud are large and growing business challenges for our clients. 41st Parameter’s patented device identification technology will enable our clients and their consumers to interact on the web effectively and securely, recognizing consumers to reduce fraud losses.”
How 41st Parameter keeps you secure, watch the 1 minute video here.
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For more information about Experian, click here and to learn more about 41st Parameter, click here.