Mastercard announced its decision to acquire Recorded Future, a leading threat intelligence firm, for $2.65 billion.
The acquisition is set to enhance Mastercard’s cybersecurity capabilities and reflect its strategic shift towards expanding its value-added services.
The deal, announced on Thursday, is a significant move for Mastercard, which processed $9 trillion in transactions last year. As cyber threats, including hacking and ransomware, become more prevalent, this acquisition aims to bolster the company’s defenses and provide advanced threat intelligence. Recorded Future, which operates globally with over 1,900 clients across 75 countries, will augment Mastercard’s existing fraud detection and cybersecurity efforts.
Mastercard and Recorded Future have been collaborating on a service that uses AI to detect compromised credit cards more effectively. Since the launch of this service earlier this year, Mastercard reported a doubling in the rate of identified compromised cards. The integration of Recorded Future’s technology is expected to further strengthen Mastercard’s fraud prevention and real-time decision-making capabilities.
Mastercard’s stock experienced a minor dip of less than 0.1% following the announcement. The deal, anticipated to close by the first quarter of 2025, aligns with Mastercard’s ongoing push into cybersecurity and other value-added services. Analysts from TD Cowen suggest that this acquisition could lead to substantial growth in Mastercard’s value-added services, potentially achieving mid- to high-teens percentage growth in fiscal year 2025.
Recorded Future was acquired by Insight Partners in 2019 for $780 million. Since then, it has become a prominent player in the threat intelligence sector, serving various government agencies and Fortune 100 companies. The company is noted for its advanced use of AI in gathering and analyzing threat data.
Mastercard’s acquisition of Recorded Future marks its largest security-related purchase to date. In recent years, the company has invested over $3 billion in expanding its cybersecurity portfolio, including previous acquisitions like Ekata and CipherTrace. The integration of Recorded Future’s services is expected to enhance Mastercard’s ability to protect against digital threats and maintain trust in its financial ecosystem.
Reuters, Market Watch, and the Register contributed to this report.
