In a significant move in the technology sector, Accel-KKR, a leading technology-focused private equity firm, has announced the acquisition of Accertify, a key player in fraud prevention and chargeback management, from American Express (NYSE: AXP). This acquisition positions Accertify, renowned for its advanced fraud prevention and payment gateway solutions, for accelerated growth and innovation.

The Growing Market of Fraud Detection and Prevention

The global fraud detection and prevention market, valued at $36.9 billion in 2022, is projected to expand significantly, reaching $182.7 billion by 2030. This growth, exhibiting a CAGR of 22.6%, is driven by the surge in global e-commerce and increased investments by companies across various industries in fraud solutions. With this backdrop, the acquisition of Accertify by Accel-KKR is timely, placing the firm in a prime position to address these market needs.

Mark Michelon’s Vision for Accertify

Mark Michelon, President of Accertify, expressed pride in the company’s achievements and excitement for the new chapter with Accel-KKR. He emphasized Accertify’s commitment to customer success and innovation, acknowledging American Express for their support and leadership in nurturing Accertify’s growth.

Strategic Enhancement of Fraud Prevention Capabilities

Accertify, recognized for its market-leading visibility, control, and configurability features, is set to leverage Accel-KKR’s support to further its expertise in fraud prevention. This partnership aims to drive growth and harness digital advancements in artificial intelligence and machine learning, crafting innovative solutions for evolving customer needs.

Park Durrett on Accertify’s Future

Park Durrett, Managing Director at Accel-KKR, highlighted Accertify’s established prowess in fraud prevention and chargeback management. He envisioned that Accertify, with its market-leading solutions and strong client base, will continue to innovate and drive market change, ultimately increasing revenue for its customers.

The Decision Behind the Acquisition

American Express’ choice to partner with Accel-KKR for this divestiture was influenced by the firm’s track record in technology investing and successful corporate divestitures. Lisa Marchese, head of Corporate Development at American Express, acknowledged Accel-KKR’s expertise in fostering growth in technology companies as pivotal for Accertify’s next development phase.

Advisors in the Deal

Kirkland & Ellis LLP and Barclays played crucial roles as legal and financial advisors, respectively, for Accel-KKR and American Express in this strategic acquisition.

This acquisition marks a significant stride in the technology sector, particularly in the fraud prevention market. With Accertify’s capabilities and Accel-KKR’s expertise, the partnership is poised to usher in a new era of innovation and growth in fraud prevention technology.

  Accel-KKR, Accertify, American Express, Mark Michelon, Park Durrett