TransUnion Acquires ID Management Firm; Equity Company Adds Sageworks

Chicago-based TransUnion will acquire Portland, Ore.-based fraud and identity management firm iovation; and Menlo Park, Calif-based Accel-KKR, a tech-focused equity firm, will purchase financial software and information supplier Raleigh, N.C. Sageworks.

iovation provides an advanced digital device reputation consortium, with insight into nearly 5 billion unique devices from more than 35,000 leading brands across more than 50 countries. “iovation has unique device identity and consumer authentication capabilities that help businesses and consumers seamlessly and safely transact in a digital world,” Jim Peck, Chicago-based TransUnion’s president and chief executive officer said in an announcement. “Together with iovation, we will create an unmatched network of offline and online identities that will help make transactions faster and more secure, while providing a frictionless experience for consumers.”

According to the companies, TransUnion, which already provides fraud and identity solutions across a variety of sectors including financial services, government, healthcare and insurance.; and iovation’s combined solutions can empower customers to quickly incorporate and adapt strategies to the fast-changing and evolving fraud

Chris Cartwright, president of TransUnion’s USIS division said. “Our broad coverage of identities and devices will enable continued innovation in advanced analytics to confidently detect threats across channels, markets and geographies, to equip customers to grow and differentiate their businesses by emphasizing superior user experiences at all touchpoints.”

iovation products include: FraudForce: which provides real-time device reputation and verification insight to identify good customers, reduce reviews and help prevent online fraud; SureScore: machine learning that predicts transaction outcomes based on device trust, transaction, and contextual or behavioral indicators; ClearKey:  which offers password-less authentication based on rigorous device fingerprinting and contextual insight; and LaunchKey: a multi-factor authentication process that lets mobile apps deliver advanced knowledge factors, biometrics, and location and proximity methods for strong, simplified access to any site or service

“Our mission has always been to make the digital world a safer place for both businesses and consumers, which perfectly supports TransUnion’s belief in using information for good,” Greg Pierson, founder and chief executive officer of iovation said. “My team is committed to working together with TransUnion to set the standard for stopping fraud and abuse while improving customer experience.”

The TransUnion acquisition could close late in the second quarter or early in the third quarter pending regulatory approval. iovation’s extensive customer base and channel partners — including Callcredit, TransUnion’s pending acquisition in the U.K. — will also expand the company’s footprint globally and in markets like gaming and retail.

Separately, TransUnion also announced an agreement to acquire Healthcare Payment Specialists, which helps healthcare providers optimize Medicare reimbursement, strengthening TransUnion Healthcare’s Revenue Protection portfolio.

Sageworks’ flagship product, ProfitCents, brought to market in 1998 and based on a proprietary artificial intelligence system, was originally designed to convert financial numbers into plain language to help business owners understand their financial statements. Since its inception, Sageworks broadened its offerings into financial institutions through lending, credit risk and portfolio risk-software products. more than 1,200 U.S. credit unions and banks and thousands of accounting professionals in the U.S. and abroad use its financial analysis solutions. To date, the company has generated millions of analytical reports aimed at making finance easier to understand and at helping people make better decisions.

Brian Hamilton, founder of Sageworks, stated, “We are pleased with the purchase by Accel-KKR, a leading firm that has vast experience in our specific industry. The purchase will allow Sageworks to have an even bigger footprint in the financial industry and to help more people, which is what we are all about.”

According to Park Durrett, managing director at Accel-KKR, “Companies like Sageworks are essential partners to financial services institutions that are both under pressure to grow but also comply with a constantly changing regulatory environment. We are excited about the opportunity to work with the Sageworks team to continue to innovate and deliver increasing value to its customer base.”