Technology Leader in Fraud
Prevention to Become Independent Entity Post-Closing
MENLO
PARK, Calif. and ITASCA,
Ill., Jan. 16, 2024 /PRNewswire/ -- Accel-KKR, a
technology-focused private equity firm, today announced that it has
reached an agreement with American Express (NYSE: AXP) to acquire
Accertify, a wholly owned subsidiary. Accertify is a leading
provider of fraud prevention, chargeback management,
account protection, and payment gateway solutions. Accertify's
advanced technologies help protect many businesses and increase
their operational efficiency. The customers of the business include
40% of the Top 100 online retailers, major global airlines,
prominent sports betting platforms, and more. The
investment will enable Accertify to accelerate its growth and
product innovation in the global fraud prevention
market as an independent entity. Terms are not disclosed.
According to a report by Fortune Business Insights, the
global fraud detection and prevention market size was
valued at $36.9 billion in 2022 and
is projected to grow from $44.0
billion in 2023 to $182.7
billion by 2030, exhibiting a CAGR of 22.6% during the
forecast period. 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.
"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
$19 billion in cumulative capital
commitments. The firm focuses on software and tech-enabled
businesses, well-positioned for topline and bottom-line growth. At
the core of Accel-KKR's investment strategy is a commitment to
developing strong partnerships with the management teams of its
portfolio companies and a focus on building value alongside
management by leveraging the significant resources available
through the Accel-KKR network. Accel-KKR focuses on middle-market
companies and provides a broad range of capital solutions,
including buyout capital, minority-growth investments, and credit
alternatives. Accel-KKR also invests across various transaction
types, including private company recapitalizations, divisional
carve-outs and going-private transactions. Accel-KKR's headquarters
is in Menlo Park, with offices in
Atlanta, London, and Mexico
City. Visit accel-kkr.com to learn more.
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