Experian buys fraud detection group The 41st Parameter

1st Oct 2013 07:27

Information services group Experian has agreed to acquire US fraud detection company The 41st Parameter for 324m dollars.Parameter, formed in 2004, provides device identification products to prevent fraud to clients in financial institutions, travel websites, eCommerce and digital media.Experian said the acquisition of Parameter increases its presence in the fraud prevention market and complements existing activities in fraud detection and online authentication.Parameter is expected to deliver about $26m of revenue for the year to end of December 2013, of which over 95% is booked and contracted."Since incorporation, 41st Parameter has experienced strong growth, with compound annual growth in revenue over the past two years of over 40%," Experian said."The contracted nature of the business model provides good forward visibility, and Experian expects to sustain growth in line with historic rates over the next 12 months."The acquisition is anticipated to be broadly earnings per share neutral in the year ending March 31st 2014.RD