Accel-KKR (a technology-focused private equity firm) recently announced that it had reached an agreement with American Express to acquire Accertify, a wholly-owned subsidiary. Accertify provides fraud prevention, chargeback management, account protection, and payment gateway solutions.
Accertify’s advanced technologies help protect many businesses and increase their operational efficiency. And the customers of the business include 40% of the Top 100 online retailers, major global airlines, prominent sports betting platforms, etc. This investment will enable Accertify to accelerate its growth and product innovation in the global fraud prevention market as an independent entity. The terms of the deal were not disclosed.
The global fraud detection and prevention market was valued at $36.9 billion in 2022 and is projected to grow from $44 billion in 2023 to $182.7 billion by 2030, showing a CAGR of 22.6% during the forecast period (Fortune Business Insights). This growth is driven by the increase in global e-commerce and the corresponding increase in spending by companies across diverse industries on fraud solutions to protect consumers while driving down the total cost of fraud. Accertify, with the support of Accel-KKR, is well-positioned to tackle these threats head-on and continue driving innovation in the fight against fraud.
Accertify’s market-leading visibility, control, and configurability features are valued by fraud teams in many of the largest blue-chip e-commerce global merchants. And 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 create innovative fraud prevention solutions that meet the evolving needs of its customers.
Accel-KKR’s track record in technology investing and large corporate divestitures influenced American Express’s decision to partner with the firm.
Kirkland & Ellis LLP served as legal advisor to Accel-KKR. Barclays served as the exclusive financial advisor, and Cleary Gottlieb Steen & Hamilton LLP served as the legal advisor to American Express.
KEY QUOTES:
“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. We have experienced tremendous growth and accomplished so much with American Express; our thanks to Amex for their support and leadership.”
“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.”
— Mark Michelon, President of Accertify
“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. We are thrilled to partner with the entire team at Accertify on its next phase of growth.”
— Park Durrett, Managing Director at Accel-KKR
“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.”
— Lisa Marchese, head of Corporate Development at American Express
