Equifax Announces Definitive Agreement to Acquire Midigator
26 Luglio 2022 - 3:18PM
Equifax® (NYSE: EFX) is expanding its global footprint in digital
identity and fraud prevention with a definitive agreement to
acquire Midigator, a provider of post-transaction fraud mitigation
solutions. With the rise of global ecommerce sales, expected to hit
$5.5 trillion in 2022, transaction disputes and chargebacks are
also surging. Midigator’s highly automated, data-driven chargeback
prevention and chargeback dispute management solutions complement
the Equifax Kount Identity Trust Global Network, which uses
award-winning Artificial Intelligence (AI) to link trust and fraud
data signals from 32 billion digital interactions, 17 billion
unique devices, and five billion annual transactions across 200
countries and territories.
“We’re energized to expand our Identity & Fraud capabilities
with the acquisition of Midigator. The New Equifax is much more
than a credit bureau. Midigator expands our robust differentiated
data assets and Kount acquisition in 2021 to bring global
businesses the information and solutions they need to better manage
fraud across the complete customer lifecycle,” said Mark W. Begor,
CEO of Equifax. “With our Equifax Cloud™ driven data &
analytics capabilities and the powerful combination of Midigator
and our Kount Identity & Fraud solutions, Equifax is poised to
capitalize on new revenue streams and relationships, broadening our
digital identity footprint in a fast growing space. This is our
12th acquisition since the beginning of 2021 and we are continuing
to reinvest our strong free cash flow in strategic bolt-on
acquisitions to expand our capabilities and drive growth in the
future.”
With global omnichannel digital payments expected to grow from
2.6 billion users in 2020 to over 4.4 billion in 2025, dispute and
chargeback rates present growing problems for businesses around the
world. Founded in 2013, Midigator offers a technology platform
designed to not only automate the dispute response process, but to
provide the real-time data businesses need to know why chargebacks
are occurring in the first place and better understand their
customers. Midigator has prevented more than 2.7 million
chargebacks. The resulting granular, post-transaction data and
digital signals complement the Equifax Kount dataset and augment
AI-driven Kount preventative fraud products to combat the
illegitimate chargebacks known as “friendly” fraud as well as
criminal fraud activities.
“The acquisition of Midigator will bolster the expansion of our
digital identity network for current and prospective customers
while further enabling new forms of engagement in online commerce,”
said Sid Singh, President of United States Information Solutions
(USIS) at Equifax. “We’re seeing strong demand from clients and
partners for digital identity and fraud prevention solutions that
encompass the entire customer journey, specifically around the
desire to mitigate and manage post-transaction issues. Many
organizations are in markets that weren’t prone to friendly fraud
before. Now they are. By combining our Kount pre-authorization and
preventative protection capabilities with Midigator’s complementary
intelligent post-authorization and automated chargeback
technologies, we’ll be able to provide a complete solution that
enhances customer experience while helping businesses to protect
and recover revenue.”
“We believe that Midigator’s chargeback representment and
dispute management solutions are a strong complement to the current
Equifax digital enablement and fraud control offerings,” said Brad
Wiskirchen, General Manager of Kount, an Equifax company. “This
acquisition will strongly position us for continued product
innovation and provide our customers and partners with the advanced
tools and insights they need to protect and recover revenue by
combatting illegitimate chargebacks.”
“Midigator was founded by e-commerce merchants to solve friendly
fraud challenges. Over the last decade, companies ranging from
startups to established brands have used Midigator for intelligent
chargeback responses, in-depth analytics, real-time account
reporting and dispute processes,” said Corey Baggett, Founder and
CEO of Midigator. “Our solutions are grounded in a strong
foundation of data analysis and we’re excited for the new
opportunities and product innovation that will come from having our
offerings combined with the expansive set of Equifax data,
analytics and products.”
The transaction is subject to customary closing conditions and
is expected to close in the third quarter of 2022. The acquisition
is not anticipated to have a material impact on 2022 Equifax
financial results. As part of the transaction, LLR Partners, who
invested in Midigator in 2018, will exit the business. Raymond
James served as financial advisor and Goodwin Proctor served as
legal advisor to Midigator in this transaction. King & Spalding
LLP served as the legal advisor to Equifax.
Once the transaction closes, Midigator will become part of the
Equifax USIS business unit.
FORWARD-LOOKING STATEMENTSThis release contains
forward-looking statements and forward-looking information. All
statements that address operating performance and events or
developments that we expect or anticipate will occur in the future,
including statements relating to our ability to successfully
consummate the proposed transaction, the expected financial and
operational benefits, synergies and growth from the Midigator
acquisition and our ability to integrate Midigator and its
products, services, technologies, IT systems and personnel into our
operations, and similar statements about our outlook and our
business plans are forward-looking statements. We believe these
forward-looking statements are reasonable as and when made.
However, forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
projections. These risks and uncertainties include, but are not
limited to, those described in our 2021 Form 10-K and subsequent
SEC filings. As a result of such risks and uncertainties, we urge
you not to place undue reliance on any forward-looking statements.
Forward-looking statements speak only as of the date when made. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
ABOUT EQUIFAX INC.At Equifax (NYSE: EFX), we
believe knowledge drives progress. As a global data, analytics, and
technology company, we play an essential role in the global economy
by helping financial institutions, companies, employees, and
government agencies make critical decisions with greater
confidence. Our unique blend of differentiated data, analytics, and
cloud technology drives insights to power decisions to move people
forward. Headquartered in Atlanta and supported by more than 11,000
employees worldwide, Equifax operates or has investments in 25
countries in North America, Central and South America, Europe, and
the Asia Pacific region. For more information, visit
Equifax.com.
ABOUT MidigatorMidigator provides an effective
and efficient alternative approach to the manual processes
typically used to manage chargeback disputes: intelligent
chargeback technology. With intuitive features that remove
complexities and flexible automation that reduces costs, clients
recover more revenue and prevent more chargebacks — all with
unparalleled ROI. To learn more about managing chargebacks smarter,
visit Midigator.com today.
FOR MORE INFORMATIONEric
Abercrombie for Equifax mediainquiries@equifax.com
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