Equifax Rises on $640 Million Acquisition of Kount

Equifax expects to expand its global footprint in digital identity and fraud protection solutions through the acquisition.
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Shares of Equifax  (EFX) - Get Report rose Friday afternoon after the company announced that it is  purchasing artificial intelligence data fraud prevention firm Kount for $640 million. 

The acquisition is expected to expand Equifax's worldwide footprint in digital identity and fraud prevention solutions. 

"As digital migration accelerates, managing authentication and online fraud while optimizing the consumer's experience has become one of our customers' top challenges," said CEO Mark Begor. "The acquisition of Kount will expand Equifax's differentiated data assets to bring global businesses the information and solutions they need to establish identity trust online."

Equifax shares were rising 2.67% to $186.13 in trading on Friday after the announcement. 

The Kount Identity Trust Global Network uses AI to link trust and fraud data signals from 32 billion digital interactions, 17 billion unique devices and five billion annual transactions across 200 countries. 

The company has a client base of 9,000 brands worldwide who use the company to protect against digital fraud in e-commerce channels. 

Kount will now be able to offer its product with an expansive set of Equifax data, analytics and products, while also leveraging Equifax's global reach. 

"We are enabling businesses across industries to establish strong digital identity trust behind every interaction while facilitating new forms of online engagement with current and prospective customers," said Equifax President Sid Singh. 

"Together, Equifax and Kount will leverage a powerful set of differentiated data assets and advanced analytics to deliver a high performance, integrated view of both digitally-native transactions and signals and traditional offline identity fraud risk indicators while maintaining privacy and security at the highest levels," Singh added.