SCOTTSDALE, AZ -- (MARKET WIRE) -- 01/12/2005 -- eFunds Corporation (NYSE: EFD), a leading provider of risk management, electronic payments and global outsourcing solutions, announced today that it has signed a definitive agreement to acquire ClearCommerce Corporation, a privately-held provider of fraud prevention and payment processing solutions for 'card-not-present' (CNP) transactions, including online and mail order/telephone order (MOTO) sales. The initial purchase price of approximately $19.4 million will be paid in cash at closing, which is expected to occur in the first quarter of 2005 subject to the satisfaction of customary closing conditions.
The ClearCommerce acquisition will strengthen eFunds' POS and online transaction processing capabilities and add a 'CNP' fraud prevention solution to its retail and financial service offerings. It will also expand the Company's market footprint in the retail sector with more than 140 new customers in seven countries. The combined entities will provide customers with a comprehensive perspective on fraud detection, based on data from both ClearCommerce's FraudDetectâ¢ database and eFunds' DebitBureauÂ® database.
"This acquisition is another step in the execution of our long-term strategic plan," said Paul Walsh, chairman and chief executive officer of eFunds. "Our combined solutions will help customers take an integrated, enterprise-wide view of their transaction processing and fraud management systems that will help control costs, increase transaction revenue, and strengthen customer loyalty. Customers can now come to one trusted provider for a full suite of fraud prevention and payment processing solutions to take advantage of the growing trend towards electronic payments."
According to a 2004 Federal Trade Commission report, identity theft and fraud accounted for more than $50 billion in retail losses in 2003. As electronic commerce continues to grow, businesses selling online are challenged to protect customers' critical payment information, as well as their own revenue and profits, from increasingly sophisticated fraud schemes.
"Both companies have deep domain expertise in payments and risk management, enabling us to create best-in-class solutions," said Robert J. Lynch, president and CEO of ClearCommerce. "Combining our respective strengths will give our customers comprehensive and predictive fraud prevention techniques as well as an integrated payment solution for both card-not-present and point-of-sale transactions."
Portico Capital Securities advised ClearCommerce on the transaction.