eBay Inc. announced that PayPal has agreed to acquire Fraud Sciences Ltd., a
privately-held Israeli company with expertise in online risk tools, in a
cash transaction with an aggregate transaction value of approximately
$169 million. Fraud Sciences’ risk tools and analytics are expected to
enhance eBay and PayPal’s proprietary fraud management systems and
accelerate the development of next generation fraud detection tools.
The acquisition of Fraud Sciences fits into eBay’s recently announced
plans to significantly improve trust and safety across its sites in
2008. “Integrating Fraud Sciences’ risk tools with PayPal’s
sophisticated fraud management system should allow us to be even more
effective in protecting eBay and PayPal’s hundreds of millions of
customers around the world,” said Scott Thompson, President of PayPal.
Key personnel from Fraud Sciences, including Yossi Barak, Fraud
Sciences’ COO, and founders Shvat Shaked and Saar Wilf, will join the
company’s technology and fraud management teams. Gadi Maier, Fraud
Sciences’ President and CEO, will provide strategic and operational
support to the company during the integration period.
This acquisition, which is subject to the satisfaction of certain
conditions, is expected to close within the next 30 days. eBay does not
expect this acquisition to have a material impact on its 2008 financial
guidance issued in conjunction with its fourth quarter earnings released
on January 23, 2008.
About Fraud Sciences
Fraud Sciences is a leading innovator in online risk tools. Following
years of intensive research, Fraud Sciences has developed a technology
that differentiates between real and fraudulent transactions with
unprecedented accuracy. Using this groundbreaking technology, Fraud
Sciences offers a unique transaction verification service to manage
online fraud. Fraud Sciences is funded by BRM Capital, Redpoint Ventures
and other US and Israeli investors.
About eBay Inc.
Founded in 1995, eBay Inc. connects hundreds of millions of people
around the world every day, empowering them to explore new opportunities
and innovate together. eBay Inc. does this by providing the Internet
platforms of choice for global commerce, payments and communications.
Since its inception, eBay Inc. has expanded to include some of the
strongest brands in the world, including eBay, PayPal, Skype,
Shopping.com, and others. eBay Inc. is headquartered in San Jose,
PayPal is the safer, easier way to pay and get paid online. The service
allows anyone to pay without sharing financial information and gives
consumers the flexibility to pay in any way they prefer, including
through credit cards, bank accounts or account balances. With more than
57 million active accounts in 190 markets and 17 currencies around the
world, PayPal enables global ecommerce. PayPal is an eBay company. More
information about the company can be found at https://www.paypal.com.