Mastercard Incorporated (MA) has announced the acquisition of Recorded Future, a leading global threat intelligence company, from Insight Partners for a hefty $2.65 billion. This strategic move underscores Mastercard’s commitment to strengthening its cybersecurity capabilities, recognizing the paramount importance of securing the digital economy, particularly the payments ecosystem.
Recorded Future, boasting a clientele of over 1,900, offers real-time threat visibility by analyzing a vast array of data sources. This enables their clients to proactively mitigate risks and stay ahead of potential threats.
The integration of Recorded Future’s expertise, particularly their advanced AI and technology prowess, will significantly enhance Mastercard’s services in areas such as identity verification, fraud prevention, decision-making, and overall cybersecurity. This acquisition promises to expand Mastercard’s threat intelligence capabilities, equipping merchants and financial institutions with even more powerful tools to combat cyber threats.
Both Mastercard and Recorded Future envision leveraging the power of AI to analyze billions of data points, enabling them to identify potential threats with greater accuracy and protect individuals and businesses from cyberattacks. This proactive approach is crucial in today’s rapidly evolving technological landscape, where the risk of cyber threats is ever-increasing.
Craig Vosburg, Chief Services Officer at Mastercard, emphasized the importance of this acquisition, stating, “Recorded Future adds to how we deliver that greater peace of mind before, during and after the payment transaction. Together we will innovate faster, create smarter models and anticipate emerging threats before cyberattacks can take place – in payments and beyond.”
The transaction is expected to be finalized by the first quarter of 2025, subject to regulatory approval and customary closing conditions.
The rising concern surrounding cyber threats is reflected in industry statistics. According to Statista, cybercrime is projected to inflict a staggering $9.2 trillion in global damages by 2024.
Last week, Mastercard unveiled its Payment Passkey Service globally, aiming to bolster online security by leveraging tokenized transactions and biometric authentication. This service, initially piloted in India, seeks to mitigate fraud and enhance approval rates, now expanding its reach globally.
As of June 30, 2024, Mastercard reported cash and cash equivalents totaling $9.13 billion. Investors interested in gaining exposure to Mastercard can consider investing in the iShares U.S. Financial Services ETF (IYG) and BlackRock Long-Term U.S. Equity ETF (BELT).
In premarket trading on Thursday, MA shares saw a slight increase of 0.20%, reaching $489.14.
This acquisition highlights the growing importance of cybersecurity in the digital age. By combining their resources and expertise, Mastercard and Recorded Future aim to create a more secure and resilient online environment for individuals and businesses alike.
