PayPal to acquire fraud prevention company Simility for $120 million - <b>Technical Lobby</b>

Friday, June 22, 2018

PayPal to acquire fraud prevention company Simility for $120 million

PayPal Holdings Inc has agreed to acquire fraud prevention technology company Simility for $120 million in cash, it said on Thursday.
PayPal to acquire fraud prevention company Simility for $120 million
Palo Alto, California-based Simility sells machine-learning-based technology to help online merchants spot fraudsters and improve risk management.

PayPal plans to make Simility's services available to its merchants following the close of the transaction, which is expected by the end of the third quarter, it said.

The acquisition underscores PayPal's broader ambition to offer small online merchants the same capabilities of bigger e-commerce providers, Bill Ready, the company's chief operating officer said in an interview.

"We are buying a company that provides great tools that merchants can use on their own," Ready said.

For example, merchants will be able to use Simility's technology to adjust their fraud controls based on what kind of products they sell.

The acquisition is the fourth deal announced by PayPal in little over a month, as it continues to aggressively expand its business beyond just online payment processing.

In May it said it had agreed to acquire Swedish payments company iZettle for $2.2 billion, in its largest ever acquisition.This week it announced an agreement to acquire Hyperwallet Systems Inc, a company that helps online individual and small business sellers accept payments, while earlier this month it revealed plans to buy prediction platform Jetlore.

"We have one of the largest data sets about how online fraud happens," Ready said.

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