Cork-headquartered Trustev sold for more than €40m

By Peter O’Dwyer, Irish Examiner Business Reporter

Cork-headquartered fraud prevention company, Trustev has been acquired by TransUnion in a deal which values the company at up to $44m (€40.14m).

Chicago-based TransUnion has agreed to pay $21m in cash up front with an agreement to pay an additional $23m contingent on Trustev achieving specific targets over the coming years.

The bumper deal is reflective of how highly thought-of Trustev is in fraud prevention and security circles having been one of the country’s fastest growing start-ups since being established by Pat Phelan and Chris Kennedy in 2013.

Commenting on the deal, Mr Phelan highlighted the synergies that would arise from the combination of the two companies and the progress he believed Trustev could make as part of TransUnion.

“Together, TransUnion and Trustev create a very powerful combination of software intelligence and rich data to stop online fraud. We will be able to help companies across many industries better spot bad actors online, and block their efforts, while letting good customers through. With TransUnion’s large global reach and Trustev’s online technology, this is a very positive move for all of our customers,” said the Trustev chief executive.

The additional $23m will be paid subject to the Irish company achieving retention, revenue and earnings targets through to 2018.

Cork's @trustev acquired by Chicago-based TransUnion in a deal worth an initial €19.18m with agreement to pay up to €21m extra over time.

— Peter O' Dwyer (@peterodwyer1) December 10, 2015

Additional €21m is contingent on Trustev achieving revenue & EBITDA targets through 2018. @patphelan describes it as "a very positive move".

— Peter O' Dwyer (@peterodwyer1) December 10, 2015

Trustev’s technology evaluates online transactions in real time with machine learning, enabling customers to stop fraud and authorise legitimate purchases while TransUnion’s fraud and identity management solutions analyze identity data in order to reduce risk exposure and potential losses.

“As fraud grows in volume and sophistication, TransUnion continues to invest in building our global capabilities to help companies manage their risk. Holistic information is a powerful tool to help our customers approve good transactions and prevent fraud, and Trustev’s innovative capabilities are at the forefront of technology in this increasingly critical field,” said TransUnion chief executive, Jim Peck.

A number of Irish entrepreneurs such as Liam Casey of PCH and Barricade founder, David Coallier are among Trustev’s investors while the company has raised more than €7m in total.