US-based technology company Equifax has agreed to take over post-transaction fraud mitigation solutions provider Midigator for an undisclosed sum.
With the definitive agreement, Equifax aims to bolster its presence in the field of digital identity and fraud prevention activities across the globe.
Midigator investor LLR Partners will quit the business as part of the deal.
The acquired entity will join the Equifax United States Information Solutions (USIS) business unit upon deal completion in the third quarter of 2022.
Equifax does not project a material impact on its 2022 results from the deal.
Midigator’s technologies are said to complement the Equifax Kount Identity Trust Global Network that employs artificial intelligence (AI) to connect trust and fraud data signals.
With the booming e-commerce market estimated to log in $5.5tn in sales this year globally, transaction and chargebacks rows are also on the rise, Equifax said.
This has resulted in the requirement for more automated, data-based chargeback mitigation and dispute management solutions.
Equifax CEO Mark W Begor said: “We’re energised to grow our Identity & Fraud portfolio with the acquisition of Midigator.
“The New Equifax is much more than a credit bureau and Midigator expands Equifax’s robust differentiated data assets to bring global businesses the information and solutions they need to better manage fraud across the complete customer lifecycle.
“With our Equifax Cloud driven data & analytics capabilities and the powerful combination of Midigator and our Kount Identity & Fraud solutions, Equifax is poised to capitalise on new revenue streams and relationships, broadening our digital identity footprint in a fast growing space.”
Equifax noted that the user base of global omnichannel digital payments is set to increase from 2.6 billion in 2020 to more than 4.4 billion in 2025.
This could pose problems for businesses in the areas of chargeback rates and related disputes.
In January last year, Equifax announced a deal to purchase AI-based fraud prevention specialist Kount.
Valued at $640m, the deal was closed in February 2021.