Accel-KKR to Acquire Accertify from American Express (2024)

Technology Leader inFraudPrevention to Become Independent Entity Post-Closing

MENLO PARK, Calif.andITASCA, Ill.,Jan. 16, 2024/PRNewswire/ — Accel-KKR, a technology-focused private equity firm, today announced that it has reached an agreement with American Express (NYSE:AXP) to acquire Accertify, a wholly owned subsidiary. Accertify is a leading provider offraudprevention, chargeback management, account protection, and payment gateway solutions. Accertify’s advanced technologies help protect many businesses and increase their operational efficiency. The customers of the business include 40% of the Top 100 online retailers, major global airlines, prominent sportsbettingplatforms, and more. The investment will enable Accertify to accelerate its growth and product innovation in the globalfraudprevention market as an independent entity. Terms are not disclosed.

According to areportby Fortune Business Insights, the globalfrauddetection and prevention market size was valued at$36.9 billionin 2022 and is projected to grow from$44.0 billionin 2023 to$182.7 billionby 2030, exhibiting a CAGR of 22.6% during the forecast period. This growth is driven by the increase in global e-commerce and the corresponding increase in spending by companies across diverse industries onfraudsolutions to protect consumers while driving down the total cost offraud. Accertify, with the support of Accel-KKR, is well-positioned to tackle these threats head-on and continue driving innovation in the fight againstfraud.

“Since our inception, Accertify has focused on the success of our customers, constantly delivering value and helping them grow. I am so proud of our team’s accomplishments. We are excited to write our next chapter with Accel-KKR,” saidMark Michelon, President of Accertify. “We have experienced tremendous growth and accomplished so much with American Express; our thanks to Amex for their support and leadership.”

Accertify’s market-leading visibility, control and configurability features are prized byfraudteams in many of the largest blue-chip e-commerce global merchants. With Accel-KKR’s support, Accertify will continue to leverage its expertise infraudprevention to accelerate growth and capitalize on digital advances in artificial intelligence and machine learning. This will enable Accertify to develop innovativefraudprevention solutions that meet the evolving needs of its customers.

Michelon continued, “The market’s need for trustedfraudprevention technology only continues to grow. This is especially true as we navigate growing e-commerce volumes, new payment methods, and more sophisticatedfraudschemes. The business will continue to add value and innovate for its customers and remain an outstanding place to work for Accertify colleagues.”

“Accertify’s proven expertise infraudprevention and chargeback management, combined with market-leading solutions and enviable consortium of clients position the company to deliver next-generation products and market innovation. Accertify helps customers reducefraudand chargeback costs, and ultimately increase revenue,” saidPark Durrett, Managing Director at Accel-KKR. “We are thrilled to partner with the entire team at Accertify on its next phase of growth.”

Accel-KKR’s track record in technology investing and successful large corporate divestitures was influential in American Express’ decision to partner with the firm.

Lisa Marchese, head of Corporate Development at American Express said, “Accel-KKR’s knowledge and expertise in helping technology companies grow is an important consideration as Accertify embarks on the next step in its journey.”

Kirkland & Ellis LLP served as legal advisor to Accel-KKR.

Barclays served as exclusive financial advisor andCleary Gottlieb Steen& Hamilton LLP served as legal advisor to American Express.

About American Express

American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more atamericanexpress.comand connect with us onfacebook.com/americanexpress,instagram.com/americanexpress,linkedin.com/company/american-express,X.com/americanexpress, andyoutube.com/americanexpress.

Key links to products, services and corporate sustainability information:personal cards,business cards and services,travel services,gift cards,prepaid cards,merchant services,Accertify,Business Blueprint,Resy,corporate card,business travel,diversity and inclusion,corporate sustainabilityandEnvironmental, Social, and Governance reports.

About Accel-KKR

Accel-KKR is a technology-focused investment firm with$19 billionin cumulative capital commitments. The firm focuses on software and tech-enabled businesses, well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions, including buyout capital, minority-growth investments, and credit alternatives. Accel-KKR also invests across various transaction types, including private company recapitalizations, divisional carve-outs and going-private transactions. Accel-KKR’s headquarters is inMenlo Park, with offices inAtlanta,London, andMexico City. Visitaccel-kkr.comto learn more.

Cautionary Note Regarding Forward-Looking Statements

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address current expectations regarding the expected timing for closing the transaction, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. American Express undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: events impacting the likelihood and timing of the completion of the transaction, such as regulatory and other approvals, consultation requirements, the execution of ancillary agreements, the cost and availability of financing for the purchaser to fund the transaction and the potential loss of key customers, vendors and other business partners. A further description of such factors can be found in American Express’ Annual Report on Form 10-K for the year endedDecember 31, 2022and the company’s other reports filed with the SEC.

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