Visa to buy AI-powered fraud detection firm Featurespace
Visa has signed a definitive agreement to acquire UK-based fraud detection firm Featurespace for its portfolio of fraud detection and risk-scoring solutions.
Visa to acquire Featurespace in FY 2025
The transaction remains subject to customary closing conditions and regulatory approval, and is expected to close in FY 2025.
News of the finalised agreement comes a month after Sky News reported that Visa and Featurespace were negotiating a potential £700 million deal, citing sources familiar with the deal.
Visa has yet to officially disclose the full financial terms of its latest purchase.
However, IP Group, which is currently Featurespace’s largest shareholder having invested £22.9 million over several financing rounds, says it expects to receive £134 million from the deal.
Founded in 2008 by Professor Bill Fitzgerald and Dave Excell, Featurespace provides enterprise-level financial crime prevention solutions, specialising in anti-money laundering (AML) and fraud detection.
Headquartered in Cambridge, the company’s flagship ARIC Risk Hub platform uses real-time machine learning software to evaluate risk and combat fraud and financial crime across more than 180 countries.
Visa says the addition of Featurespace to its fraud detection portfolio will enable its clients to “manage fraud in real-time and further protect the payments ecosystem using AI-fueled solutions”.
“Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges,” explains Antony Cahill, global head of value-added services at Visa.
