American Express to Acquire Accertify to Broaden Fraud Prevention Services
CHICAGO, IL, November 4, 2010
American Express today announced it has agreed to acquire Accertify Inc., a leading provider of solutions that help merchants combat fraudulent online and other card-not-present transactions.
Launched in 2007, Accertify provides a hosted software application that offers an extra level of security for transactions over any of the major payment networks, including American Express, Visa, MasterCard, Discover, PayPal or any other alternative payment method. Accertify also offers merchants the option to outsource their end-to-end fraud management process. Many of its customers have quickly achieved significant gains in the efficiency, accuracy and productivity of their fraud prevention efforts with reductions of 50% or more in their fraud losses and customer complaints due to fraud.
American Express currently provides fraud prevention tools such as Electronic Verification, Enhanced Authorization and Charge Verification. These tools help merchants to evaluate the potential risk of e-commerce and card-not-present transactions on the American Express network. With the acquisition of Accertify, American Express will be able to broaden its fraud prevention services to merchants for transactions that take place on all networks. Accertify’s capabilities will be incremental and complementary to what American Express offers merchants today.
“Merchants are interested in fraud tools that cover every aspect of the payment process; and we’re pleased that we will now be able to deliver an industry-leading solution to them,” said Bill Glenn, president, American Express Global Merchant Services. “While we already provide innovative fraud services for American Express transactions, merchants increasingly want single source platforms to address all types of transactions, regardless of the payment brand. We understand merchants’ payment needs on a broader scale, and we’re building on our commitment to expand e-commerce solutions and value-added services. Accertify will enable us to further increase trust and confidence in the online payment space.”
Jeff Liesendahl, co-founder and chief executive officer of Accertify, will continue as president.
“Since forming Accertify, our goal has been to build a fraud prevention platform that can help transform the industry and accelerate e-commerce growth,” said Liesendahl. “Becoming part of American Express will enable us to build on our success by scaling our business, providing even more merchant benefits, and extending our global presence. Together, we look forward to strengthening our platform with enhanced features and functionality that provide greater value and efficiency for merchants.”
The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2010. The purchase price is expected to be approximately $150 million. Upon closing, Accertify would operate as a wholly owned subsidiary of American Express.
Accertify Inc., based in Itasca, IL, is a leader in providing e-commerce companies with software, tools and strategies for preventing online fraud and mitigating enterprise-wide risks. Its Interceptas® platform integrates every component of fraud prevention, applies state-of-the-art automation to each step in process and offers advanced capabilities for managing fraud data. Built with a merchant's perspective, Interceptas delivers unparalleled flexibility in preventing various types of criminal behavior, including fraud related to card-not-present purchases, online scams and policy abuse, merchandise returns and exchanges and other data management challenges. Accertify is committed to providing online companies with the most cost-effective solution to fraud available. For more information, visitwww.accertify.com.
About American Express
American Express is a global services 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, twitter.com/americanexpress andyoutube.com/americanexpress.
Information Related To Forward-Looking Statements
This report 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 the Company’s expected business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” 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. The Company 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: the underlying assumptions related to the transaction proving to be inaccurate or unrealized, events impacting the likelihood and timing of the completion of the transaction and the Company’s ability to exploit the assets to be acquired upon consummation of the transaction and execute on its strategy to offer a fraud prevention solution to merchants that can be used in all types of transactions regardless of payment brand. A further description of these uncertainties and other risks can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2009, its Quarterly Reports on Form 10-Q for the three months ended March 31 and June 30, 2010, and the company’s other reports filed with the SEC.