PAYPAL TO ACQUIRE FRAUD PREVENTION COMPANY SIMILITY FOR $120 MILLION

BENGALURU: DIGITAL payments platform Paypal Holdings Inc. on Friday, signed a deal to acquire Palo Alto-based Simility Inc., a fraud prevention and risk management platform, for $120 million in cash.

The transaction is expected to close in the third quarter of 2018, subject to regulations, according to a company statement.

The acquisition, will allow Paypal to roll out new fraud prevention features to merchants. Features such as fraudulent payment activity prevention, risk management, and transaction verification will soon be introduced on the merchant’s online dashboard, Paypal said.

Simility, which was founded in 2014, has raised more than $20 million till date from Accel Partners, and California-based investors including Trinity Ventures and The Valley Fund. It currently caters to clients in banking and financial services, online marketplaces and classifieds, payment services providers, and ecommerce among others.

“Paypal has been at the forefront of developing innovative fraud prevention and risk management solutions for nearly 20 years, and now, merchants will be able to configure those solutions to manage the unique complexities of their businesses. Together with Simility, we will be able to put more control in the hands of our merchants to fight fraud while helping make commerce experiences faster and more secure,” said Bill Ready, chief operating officer, Paypal in a statement .

“We are excited to enter the next phase of our growth with Paypal and are thrilled to join them to help drive the next generation of payment and commerce solutions,” added Rahul Pangam, CEO, Simility in a statement.