Socure inks $136m deal to acquire AI-powered risk decisioning platform Effectiv
US digital identity verification and fraud prevention platform Socure is set to acquire Effectiv, a San Francisco-based start-up specialising in risk decisioning, for $136 million.
Socure seals deal to buy Effectiv for $136m
Expected to close next month, the deal will see Effectiv’s AI-powered orchestration and decisions platform integrated with Socure’s digital ID tech, enabling Socure to offer real-time payments fraud and anti-money laundering (AML) transaction monitoring as part of a new suite of transaction-level solutions.
Most notably, Socure will be able to leverage the Effectiv platform to write and manage typically complex combinatorial rules for its own solutions, in addition to those provided by third parties.
The acquisition will see the entire Effectiv team join Socure.
Founded in 2021 by Ravi Sandepudi, Ritesh Arora, Jonathan Doering, and Anupam Tarsauliya, Effectiv currently serves as a fraud and identity partner to Socure, and maintains an ecosystem of more than 50 integrated third parties.
Socure says that this close working relationship “lays the foundation for a rapid integration and commercial general availability within the next 45 days”, while enabling the company to “deepen existing enterprise partnerships, while also expanding to more broadly serve the midmarket”.
Socure adds that the company “first worked closely with the Effectiv founders during their time at Simility”, an anti-fraud platform which was acquired by PayPal in 2018 for $120 million.
