A San Francisco-based start-up that specializes in risk decisioning, Effectiv, is set to be acquired by US digital identity verification and fraud prevention platform Socure for $136 million. The deal, which is anticipated to be finalized next month, will involve the integration of Effectiv’s AI-powered orchestration and decisions platform with Socure’s digital ID technology. This integration will allow Socure to provide real-time payments fraud and anti-money laundering (AML) transaction monitoring as part of a new suite of transaction-level solutions.
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The company, Socure, asserts that this close working relationship “lays the foundation for a rapid integration and commercial general availability within the next 45 days” and allows the company to “deepen existing enterprise partnerships, while also expanding to more broadly serve the midmarket.” Socure further states that the company “first collaborated closely with the Effectiv founders during their tenure at Simility,” an anti-fraud platform that was acquired by PayPal in 2018 for $120 million.
Socure will be able to compose and manage typically complex combinatorial rules for its own solutions, as well as those provided by third parties, by leveraging the Effectiv platform. This is particularly noteworthy. The entire Effectiv team will be incorporated into Socure as a result of the acquisition. Effectiv, which was established in 2021 by Ravi Sandepudi, Ritesh Arora, Jonathan Doering, and Anupam Tarsauliya, is currently a fraud and identity partner to Socure. It also maintains an ecosystem of over 50 integrated third parties.
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