Thursday, December 10th: Trustev, a global provider of digital verification technology to multiple industries, was acquired by one of its investors TransUnion for $21 million. Both companies made an announcement in regard to the acquisition and shared their excitement.
The acquisition closed on December 9 with TransUnion paying the whole sum in cash. Moreover, TrustUnion will inject another $23 million once Trustev achieves the specified retention, revenue and EBITDA targets through 2018.
TransUnion provides fraud and identity management solutions that reduce risk exposure and potential losses. Trustev’s technology evaluates online transactions in real time with machine learning, enabling customers to stop fraud and authorize legitimate purchases.
Jim Peck, TransUnion’s president and CEO, commented in the official press release about the new venture, “As fraud grows in volume and sophistication, TransUnion continues to invest in building our global capabilities to help companies manage their risk. 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.”
Both sides are bringing their strengths together in this union. Trustev’s real-time online risk analytics and TrustUnion’s deep datasets get combined to take the confidence in the system to a whole another level. The unified solution will support account acquisition, account management and digital payments.
Trustev technology already powers TransUnion’s ID Manager product and has decreased customers’ fraud losses by 60% while boosting approvals. ID Manager along with other TrustUnion solutions are used by companies globally across industries.
Commenting on the powerful alliance, Pat Phelan, co-founder and CEO of Trustev, said, “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.”
What does this mean for clients?
Both Pat and Jim see great opportunities in the venture and positive implications for customers. The acquisition will allow deep integration with TrustUnion to create rich datasets and even more advanced fraud spotting technology than ever before. Clients will be able to to confirm if a customer really lives at the address mentioned, if emails are really associated with them and if they can answer challenge questions if required. It’s a tremendously powerful combination for Trustev`s fraud prevention focus, as Pat shared.
The Trustev and TransUnion history goes back to 2004, when companies started working together on clever ways to factor in consumer data. Now, as the companies are combined, it will enhance the process of creating a robust network of identity data, and build new and innovative ways of spotting fraud directly on top of it.
Enhanced fraud-detection is not the only benefit for clients. As Trustev says, customers will also benefit post-acquisition from the strength and stability of TransUnion as a publicly-traded company and one of the most respected risk and information solutions providers in the world. The global footprint of TransUnion adds great value to Trustev making global resources available for the company and giving it an opportunity to reach more locations.
Trustev and TransUnion combine their efforts in using information to help people make better decisions that can transform their lives and business, as stated by Trustev. Both companies are very excited to start their journey together to build outstanding solutions and prevent even more fraud.