ACI Worldwide Completes Acquisition of Retail Decisions (ReD)

ACI Worldwide Completes Acquisition of Retail Decisions (ReD)


With ReD, ACI better equips multiple segments globally as they address disruption in the ecommerce market

NAPLES, FLA — August 12, 2014 — ACI Worldwide (NASDAQ: ACIW), a leading global provider of electronic payment and banking solutions, announced today that it has completed the acquisition of Retail Decisions (ReD), a leader in fraud prevention solutions. Under the terms of the agreement, ACI Worldwide acquired ReD for an all-cash purchase price of $205 million.

Brookwood, England-based ReD is a leading ecommerce and fraud prevention company serving the payments industry. Its suite of solutions helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. ReD serves more than 1,500 retailers, issuers, acquirers, processors and switch networks globally.

“We are excited to welcome ReD into the One ACI organization. The addition of ReD’s talented team and product portfolio enhances our Universal Payments strategy and further strengthens our leadership position in the fast-growing payments risk management space,” said Philip Heasley, President and CEO, ACI Worldwide. “The combination of ACI and ReD results in a powerful merchant retail solution that will drive our market leadership—providing an unrivaled customer experience–consistent and unified anytime, anywhere and through any access point or device.”

Commitment to customers
ACI also announced that consistent with its long-standing lifecycle management policy, the company is committed to maintaining multi-year roadmaps and contractual commitments to ReD’s customers. ReD’s customers will benefit from ACI’s size and scale to support current and future initiatives. ACI invests a high percent of revenues in R&D, significantly ahead of industry averages. The company also provides a world-class hosting environment, as well as global 24x7x365 support.

Updated 2014 guidance
As previously disclosed, we expect ReD will generate approximately $18 million in revenue and $4 million in adjusted EBITDA for the remainder of 2014. Consequently, we now expect to generate non-GAAP revenue in a range of $1.078 to $1.098 billion for the full year 2014. Adjusted EBITDA expectations are now a range of $294 to $304 million. We expect non-GAAP revenue of $254 to $264 million in the third quarter.

Source – ACI Worldwide
 
 

ACI Worldwide to Acquire ReD

Addition of leading ecommerce and fraud prevention tools will provide an unrivaled merchant retail payments solution

NAPLES, FLA — July 21, 2014 — ACI Worldwide (NASDAQ: ACIW), a leading global provider of electronic payment and banking solutions, and Retail Decisions (ReD), a leader in fraud prevention solutions, today announced that they have entered into a definitive transaction agreement. Under the terms of the agreement, ACI Worldwide will acquire ReD for an all-cash purchase price of $205 million and expects the transaction to close in the middle of the third quarter, 2014.

Brookwood, England-based ReD is a leading ecommerce and fraud prevention company serving the payments industry. The company’s suite of solutions – ReD Shield®, ReD Fraud Xchange, ReD PRISM®, ReD Alerts, ReDi, ReD1 Gateway and LiveProcessor – helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. ReD serves retailers, issuers, acquirers, processors and switch networks globally.

ReD has a compelling SaaS and transaction-based financial model, with over 80 percent recurring revenue. The company, with its multi-dimensional detection engine and proprietary global fraud database, generates high customer retention rates and strong revenue growth.

As payments increasingly move online, the focus on card-not-present fraud prevention will also increase. According to market research from eMarketer in a February 2014 report, the global ecommerce market is projected to grow over 17 percent each year, representing a total value of nearly $2.4 trillion by 2017. Further, as the U.S. moves toward adoption of EMV standards, fraud attempts are expected to shift toward the card-not-present online segment. According to Julie Conroy, Research Director, Aite Group, “Merchants around the world, and banks for that matter, should prepare for a very sharp increase in card-not-present fraud. Without significant preventative efforts by issuers and merchants alike, we’re going to see pretty dramatic increases.”

ReD’s technology and software solutions bring ACI a proven, global SaaS-based ecommerce offering with integrated fraud detection/management. With ReD, ACI will become the market leader in the rapidly growing payments risk management market across multiple segments globally.

“Retailers are currently operating disparate systems for their online, mobile and point-of-sale operations,” said Philip Heasley, President and CEO, ACI Worldwide. “ACI and ReD together have an unrivaled merchant retail solution – global, omni-channel with integrated fraud management built on Universal Payments technology. This solution will not only guarantee a consistent, unified customer experience in any retailer modality, but also will be a key part of our real-time commerce, any-to-any transaction strategy. Additionally, ReD’s consortium models, business intelligence offerings, modeling and risk analyst expertise will both complement and enhance our issuer risk management solutions.”

“We are extremely excited to integrate our leading technology into ACI’s revolutionary Universal Payments,” said Paul Stanley, CEO, ReD. “Together, we will deliver a much more powerful offering that will materially expand the adoption of integrated fraud prevention solutions.”

Source – ACI Worldwide

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