TransUnion in a move to beef up its E-Commerce fraud protection has bought Trustev in a $44 million deal. Trustev recently disclosed investments of just under $8 million, the previous primary backers of Trustev are Mangrove and Greycroft. Despite a mere $8 million prior investment, TransUnion was willing to pay a Whooping $44 million, because it considers E-commerce fraud protection as a key area.
“As fraud grows in volume and sophistication, TransUnion continues to invest in building our global capabilities to help companies manage their risk,” said Jim Peck, TransUnion’s president and chief executive officer in a statement. “Holistic information is a powerful tool to help our customers approve good transactions and prevent fraud, and Trustev’s innovative capabilities are at the forefront of technology in this increasingly critical field.”
“Together, TransUnion and Trustev create a very powerful combination of software intelligence and rich data to stop online fraud. We will be able to help companies across many industries better spot bad actors online, and block their efforts, while letting good customers through. With TransUnion’s large global reach and Trustev’s online technology, this is a very positive move for all of our customers,” said Pat Phelan, co-founder and chief executive officer of Trustev, in a statement.
Financial pundits consider this as a master stroke, as TransUnion until recently was just considered as a credit report provider, however with this acquisition of online technology and its global reach TransUnion will project itself as a provider of backend solutions for enterprises to reduce online fraud.