Accel-KKR to Acquire Accertify from American Express
- Accel-KKR's acquisition of Accertify will enable the company to accelerate its growth and product innovation as an independent entity.
- The global fraud detection and prevention market size is projected to grow at a CAGR of 22.6% from 2023 to 2030, indicating significant potential for growth in the industry.
- Accertify's market-leading visibility, control, and configurability features are highly valued by fraud teams in many of the largest e-commerce global merchants.
- Accel-KKR's track record in technology investing and successful large corporate divestitures was influential in American Express' decision to partner with the firm.
- None.
Insights
The acquisition of Accertify by Accel-KKR from American Express represents a strategic move in the fraud prevention and financial technology markets. The independence of Accertify post-acquisition allows for potential market agility and focused innovation in fraud prevention technologies. Given the projected compound annual growth rate (CAGR) of 22.6% in the fraud detection and prevention market, this move by Accel-KKR may be seen as an attempt to capitalize on a rapidly expanding sector.
Accertify's strong client base, including 40% of the Top 100 online retailers, provides a solid foundation for future growth. The support from Accel-KKR could enable Accertify to enhance its product offerings, particularly through advancements in artificial intelligence and machine learning. This technological edge is critical in maintaining competitiveness and addressing the evolving landscape of e-commerce fraud.
The financial implications of this acquisition could be significant for American Express, Accel-KKR and the broader market. Although the terms were not disclosed, the divestiture of a subsidiary like Accertify allows American Express to streamline its operations and potentially reallocate resources to other strategic areas. For Accel-KKR, the investment in Accertify is likely to be a calculated move to secure a foothold in a high-growth industry.
Investors should monitor the performance of Accertify post-acquisition, as its success could influence American Express's stock performance indirectly through the sale's proceeds and directly affect Accel-KKR's portfolio. The focus on fraud prevention technology is particularly pertinent given the increasing prevalence of cyber threats and the importance of secure online transactions.
From a cybersecurity perspective, the move underscores the importance of advanced fraud prevention solutions in a digital economy where cyber threats are becoming more sophisticated. Accertify's expertise in fraud prevention, chargeback management and payment gateway solutions is critical in mitigating risks associated with online retail, global airlines and sports betting platforms.
The emphasis on innovation in artificial intelligence and machine learning by Accertify, supported by Accel-KKR, is essential for staying ahead of fraudsters. The development of next-generation products in this space not only benefits Accertify's clientele by reducing fraud-related costs but also sets industry standards for fraud prevention.
Technology Leader in Fraud Prevention to Become Independent Entity Post-Closing
According to a report by Fortune Business Insights, the global fraud detection and prevention market size was valued at
"Since our inception, Accertify has focused on the success of our customers, constantly delivering value and helping them grow. I am so proud of our team's accomplishments. We are excited to write our next chapter with Accel-KKR," said Mark Michelon, President of Accertify. "We have experienced tremendous growth and accomplished so much with American Express; our thanks to Amex for their support and leadership."
Accertify's market-leading visibility, control and configurability features are prized by fraud teams in many of the largest blue-chip e-commerce global merchants. With Accel-KKR's support, Accertify will continue to leverage its expertise in fraud prevention to accelerate growth and capitalize on digital advances in artificial intelligence and machine learning. This will enable Accertify to develop innovative fraud prevention solutions that meet the evolving needs of its customers.
Michelon continued, "The market's need for trusted fraud prevention technology only continues to grow. This is especially true as we navigate growing e-commerce volumes, new payment methods, and more sophisticated fraud schemes. The business will continue to add value and innovate for its customers and remain an outstanding place to work for Accertify colleagues."
"Accertify's proven expertise in fraud prevention and chargeback management, combined with market-leading solutions and enviable consortium of clients position the company to deliver next-generation products and market innovation. Accertify helps customers reduce fraud and chargeback costs, and ultimately increase revenue," said Park Durrett, Managing Director at Accel-KKR. "We are thrilled to partner with the entire team at Accertify on its next phase of growth."
Accel-KKR's track record in technology investing and successful large corporate divestitures was influential in American Express' decision to partner with the firm.
Lisa Marchese, head of Corporate Development at American Express said, "Accel-KKR's knowledge and expertise in helping technology companies grow is an important consideration as Accertify embarks on the next step in its journey."
Kirkland & Ellis LLP served as legal advisor to Accel-KKR.
Barclays served as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to American Express.
About American Express
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, X.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Accertify, Business Blueprint, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability and Environmental, Social, and Governance reports.
About Accel-KKR
Accel-KKR is a technology-focused investment firm with
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address current expectations regarding the expected timing for closing the transaction, among other matters, contain words such as "believe," "expect," "anticipate," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," "continue" and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. American Express undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: events impacting the likelihood and timing of the completion of the transaction, such as regulatory and other approvals, consultation requirements, the execution of ancillary agreements, the cost and availability of financing for the purchaser to fund the transaction and the potential loss of key customers, vendors and other business partners. A further description of such factors can be found in American Express' Annual Report on Form 10-K for the year ended December 31, 2022 and the company's other reports filed with the SEC.
Media Inquiries:
For American Express
Melanie Backs
American Express
P: 1 203-517-8926
Melanie.L.Backs@aexp.com
For Accel-KKR
Todd Fogarty
Kekst CNC
P: 1 917 992 1170
todd.fogarty@kekstcnc.com
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SOURCE Accel-KKR
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