Experian, a global information services company, is to acquire The 41st Parameter, Inc, a provider of fraud detection services, based in the US. 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.
For the year ending 31 December 2013, Experian expects 41st Parameter to deliver approximately US$26m of revenue, of which over 95% is booked and contracted. Revenues are licence-based and are recognised over the life of the contract, which is typically 2-3 years in duration. Client renewal rates exceed 95%.
Since incorporation, 41st Parameter has experienced strong growth, with compound annual growth in revenue over the past two years of over 40%. The contracted nature of the business model provides good forward visibility, and Experian expects to sustain growth in line with historic rates over the next twelve months. The acquisition is expected to be broadly EPS neutral in the year ending 31 March 2014.
Incorporated in 2004, 41st Parameter products use device identification to prevent fraud. Clients use 41st Parameter’s products to enable consumers to complete transactions on the web quickly and securely, reducing fraud losses while simultaneously authenticating consumers with minimal intrusion. Clients also use 41st Parameter products to enhance internal operational efficiency by reducing the number of false detections of potential fraud. Its clients include financial institutions, travel web sites, eCommerce merchants and customers in the digital media segment.
Ireland, Dublin & USA, San Jose, CA
Related articles:
- WPP acquires Sinotrust Market Research in China from Experian Posted on May 13, 2013
- Experian – Preliminary results for the year ended 31 March 2013 Posted on May 9, 2013
- Experian acquires Decisioning Solutions Posted on April 3, 2013
- Experian acquires Virid Interatividade Digital, a permission-based email marketing company Posted on July 26, 2011
- Experian acquires a majority stake in Techlightenment Posted on January 19, 2011
- Experian acquires RentBureau Multifamily Division Posted on June 24, 2010
- The First American Corporation acquires Experian’s interest in FARES Posted on April 23, 2010
You must be logged in to post a comment.