Relx swoops in on US firm ThreatMetrix with £580 million takeover
The cash transaction will mean bring the California-based firm under Relx’s LexisNexis Risk Solutions brand.
Information and analytics firm Relx has secured a cash deal to buy US authentications firm ThreatMetrix for £580 million.
The takeover will mean bringing the California-based firm under Relx’s LexisNexis Risk Solutions brand, having already formed a commercial partnership with the division ahead of the takeover.
Relx’s risk and business analytics department uses advanced analytics and ID credentials – including physical addresses and assets – to address fraud and authentication issues.
ThreatMetrix is expected to complement those efforts as it already combines device, location, anonymous ID information and threat intelligence data to help identify “high-risk digital behaviour and transactions in real time”.
Relx said its takeover target was one of the “largest repositories of online digital identities in the world”, with 1.4 billion unique online identities from 4.5 billion devices across 185 countries.
Mark Kelsey, chief executive of Relx’s risk and analytics business, said: “ThreatMetrix is widely recognised as a leader in the digital identity space.
“Bringing that together with our own strengths in physical identity attributes will give our clients across all forms of commerce and geographies a more reliable, comprehensive approach to fraud and identity risk management while maintaining the privacy and security principles our customers have come to expect,” he said.
“The acquisition is in line with our organic growth driven strategy, supported by acquisitions of targeted data sets and analytics that are natural additions to our existing business.”
The deal is expected to close during the first half of this year, but will not have a material impact on Relx’s group earnings, the company said.
The deal adds to the eight acquisitions completed by Relx Group in 2017, when it spent around £123 million on takeovers compared to around £300 million per annum on average over the last five years.
Relx also disposed of 17 assets over the period for around £87 million in 2017.