Visa has signed a definitive agreement to acquire the British AI-driven financial fraud prevention company Featurespace for an undisclosed amount.
Founded in 2008 and based in Cambridge, Featurespace serves numerous major financial institutions, including HSBC and NatWest, with its machine learning-based fraud detection technology. The firm has raised approximately $100 million from investors, including the late technology entrepreneur Mike Lynch.
Visa indicated that this acquisition will enhance its portfolio of fraud detection and risk-scoring solutions, equipping clients with AI-powered technology to protect the payments ecosystem.
In August, Sky News reported that discussions regarding the acquisition were ongoing, with an estimated price of £700 million. The deal is expected to close in 2025, pending standard closing conditions, including regulatory approval.
Antony Cahill, global head of value-added services at Visa, stated, “Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges.”
IPC Group, Featurespace’s largest shareholder, anticipates receiving a total of £134 million in cash for its stake in the company, with £119 million disbursed at completion and an additional £15 million pending deferral.
Greg Smith, CEO of IPC Group, expressed satisfaction with the outcome, saying, “Having supported Featurespace for over ten years, we are delighted with this record exit, which represents an excellent financial return for IP Group.”
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