Mastercard has acquired the cybersecurity firm Recorded Future for $2.65 billion. The deal was announced on Thursday and is expected to close in the first quarter of next year. Recorded Future is based in Boston and has about 1,900 clients in 75 countries.
It uses artificial intelligence to analyze data and identify potential cyber threats. Mastercard said the acquisition will help it develop more robust cybersecurity practices. It will also allow for greater synergies in threat intelligence.
“As a technology company in the global payments industry entrusted with the safeguarding of sensitive information, cybersecurity risk management is an integral part of our overall enterprise risk management program,” Mastercard stated. Analysts expect the deal to enhance Mastercard’s business significantly. “We see the Recorded Future deal bolstering Mastercard’s competitive advantage,” analysts at William Blair wrote in a note to clients.
Mastercard enhances cyber threat detection
Mastercard’s rival Visa has also focused on cybersecurity efforts and acquired firms in the past. The purchase of Recorded Future builds on Mastercard’s cybersecurity AI development.
“Mastercard and Recorded Future use AI to analyze billions of data points to identify potential threats, helping to protect people and businesses,” a release stated. Mastercard CEO Michael Miebach recently highlighted how the company is using AI to predict the next likely defrauded card number. The integration of Recorded Future’s capabilities is expected to further these efforts.
Recorded Future has about $300 million in annual revenue and 1,000 employees. It was previously valued at $780 million when purchased by Insight Partners in 2019. “We will remain an independent and open intelligence platform, operating as an independent subsidiary of Mastercard,” a spokesperson said.
The teams will focus on innovating faster and helping customers spot potential cyber attacks before they happen.
