Experian purchases 41st Parameter

The aggregate purchase price for all outstanding stock, stock options and warrants of 41st Parameter is USD 324 million, of which USD 14 million is subject to limited, two-year earn-out provisions and will be funded from Experians existing cash resources. The transaction is still subject to customary closing conditions.

The acquisition of 41st Parameter will increase Experians presence in the fraud prevention market and complement its existing activities in fraud detection and online authentication. Growth in this market is being driven by the proliferation of devices around the world, the growth in e-commerce and mobile volumes and an increasing requirement for businesses to service their customers across multiple devices.

According to the company there is considerable opportunity to drive adoption rates of 41st Parameters products through cross-selling to Experians existing client base, by leveraging Experians geographic footprint and through the combination of device identification into Experians existing identity management products.
The acquisition is expected to be broadly EPS neutral in the year ending 31 March 2014.

41st Parameter provides companies with software, dubbed FraudNet, for detecting and preventing fraud across a number of industries, including finance, e-commerce, and travel. The company aims to protect against cybercrime threats including card not present fraud, new account origination fraud, phishing and account compromise, credit bust outs, and fraud ring attacks.

Experian allows businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also provides individuals with the ability to check their credit report and credit score and protect against identity theft.