Visa is to acquire RegTech Featurespace, developer of real-time artificial intelligence payments protection technology, in a deal worth a reported £700 million.
Since its inception out of Cambridge University’s engineering department, Featurespace has developed algorithmic-based solutions to analyse transaction data and detect elusive fraud cases.
It counts the likes of HSBC, NatWest and Worldpay among its clients.
The value of the deal was undisclosed but a recent Sky News report suggested it could come in around £700m.
“Over the past 12 years we have served the financial services industry, building a company that has gone from strength to strength, and we are thrilled to become a part of Visa,” said Dave Excell, founder of Featurespace.
“With Visa, we can bring the innovation, integrity and purpose of our platform and our team to more payment service providers and ultimately, stop more people from becoming victims of financial crime.”
Martina King, CEO of Featurespace (pictured, main image), told BusinessCloud executive editor Chris Maguire recently that “I measure the quality of my day by the number of belly laughs I’ve had”.
Payments processor Visa says the acquisition will complement and strengthen its portfolio of fraud detection and risk-scoring solutions used by clients around the world to grow and protect their businesses.
“Providing our clients with solutions that can adapt to and anticipate the changing threat landscape is of the utmost importance,” said Antony Cahill, global head of value-added services at Visa.
“Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges. We look forward to welcoming the Featurespace team to Visa.”
The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals, and expected to close in fiscal year 2025.